SA’s medium-term budget policy statement demonstrates the Treasury’s commitment to fiscal consolidation, although its lack of detail on economic growth plans and reform at state-owned enterprises (SOEs) is worrying, S&P Global Ratings associate director Gardner Rusike says. S&P is the only ratings agency to have SA on the lowest investment-grade rating of BBB-with a negative outlook. While the medium-term budget was "neutral", it could have been more forthcoming with details on growing the economy, Rusike said. "We would have liked to see more of a progress report on the economic reforms that the government said they would like to do, as well as on the SOE reforms at least so that we can see tangibly the progress being made," Rusike said. Thebe Stockbroking analyst Henry Flint said SA should manage to avoid a ratings downgrade in December based on what was presented in the mini-budget. However, it remained to be seen whether the ratings agencies believed the government could deliver...
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