Moody’s decision to cut Namibia’s long term debt rating to “junk” status has spurred calls for more privatization

Moody’s decision to cut Namibia’s long term debt rating to “junk” status has spurred calls for more privatization and a reduction of public sector wages. “In a statement titled ‘Blue Monday’ … Capricorn Asset Management summed up the feelings by stating that ‘the entire country is quite mood(y) this morning because this downgrade just seems a bit unfair after so much has been done to comply with the recommendations given after the last assessment.’ The Capricorn statement was followed … by a lengthy analysis and critique of the Moody's verdict by the Economic Association of Namibia (EAN).” The EAN urged “a ‘comprehensive review’ of the public sector ‘to streamline operations and reduce recurrent expenditure, in particular the wage bill.’” Finance Minister Calle Schlettwein said “what is also interesting about this rating is that the wage bill has not changed since December, so we don't understand why it is all of a sudden a risk that justifies a downgrade.”