Moody's says South Africa's budget update is credit positive

Polity Audio Articles · Oct 26, 2026 · 1m

Moody's says South Africa's budget update is credit positive

Moody's Ratings said in a report released on Monday that South Africa's medium-term budget policy statement was positive for the country's credit profile, citing tighter monetary policy, continued fiscal consolidation despite higher oil prices, and weaker nominal GDP growth than assumed in February.

Moody's rates South Africa Ba2 with a positive outlook. The issuer did not announce a rating action.

The government cut its fiscal 2026 consolidated deficit target to 3.9% of GDP from 4.0% in the policy statement, helped by a…