Ratings agencies applaud South Africa’s budget: Treasury

PUBLISHED: Thu, 22 Feb 2018 15:12:41 GMT

Ratings agencies Fitch, Moody’s and S&P Global all applauded South Africa’s budget where the Treasury raised value added tax for the first time in over two decades and announced plans to dramatically reduce its debt, a senior official said on Thursday.

“We engaged with Fitch and Moody’s and S&P. Their preliminary view was that we did well,” Director General Dondo Mogajane told a parliamentary committee, saying the department had spoken telephonically to the agencies after the budget speech was delivered on Wednesday.

Fitch and S&P’s cut the country’s local debt rating to subinvestment in 2017, while Moody’s is due to announce a decision in March.

Reporting by Mfuneko Toyana; Editing by James Macharia

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