October 30, 2017 / 10:32 AM / a year ago

Moody's says South African budget statement credit negative

JOHANNESBURG, Oct 30 (Reuters) - Ratings agency Moody’s said on Monday that the medium-term budget statement presented by South African Finance Minister Malusi Gigaba last week was credit negative, as it signalled a departure from fiscal consolidation efforts.

Gigaba shocked markets on Oct. 25 by flagging sharply weaker growth expectations, wider deficits and rising government debt in a closely watched budget speech.

“In our view, unless the government presents a credible fiscal consolidation plan in the February 2018 budget, debt sustainability is at risk,” Moody’s analyst for South Africa Zuzana Brixiova said in a statement.

Reporting by Olivia Kumwenda-Mtambo and Alexander Winning; Editing by James Macharia

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below