Higher South African spending limit will not weaken policy credibility – Moody’s

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JOHANNESBURG (Reuters) – Ratings agency Moody’s said on Thursday that it did not believe that South Africa’s decision in its 2019 budget to raise the expenditure ceiling by around 16 billion rand ($1.14 billion) over three years would weaken fiscal policy credibility.

Moody’s, the last of the big three ratings agencies to rate South Africa in investment grade, is scheduled to review that rating next month.

It added in a note on the budget that South Africa’s contingent liability risks remained sizeable and that the country’s government debt burden was now expected to exceed 60 percent of gross domestic product by the fiscal year 2023.

($1 = 14.0117 rand)

Reporting by Alexander Winning; Editing by Alison Williams

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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