Policy continuity due South Africa election "credit positive": Moody's

LONDON (Reuters) - A continuation of recent economic policies following a decisive victory for the ruling African National Congress in last week's South African elections was "credit positive", ratings agency Moody's said on Tuesday. The ANC won 62.16 percent of the votes, while its main rival, the Democratic Alliance, took 22.22 percent, and the ultra-left Economic Freedom Fighters managed only 6.35 percent. "Our key takeaway from this election is that macroeconomic policy continuity is now more assured, a credit positive," Moody's said in a credit report. Moody's rates South Africa at Baa1, with negative outlook. "We expect to see a partial reshuffling of the Cabinet to install ministers that agree with the broad macroeconomic framework, including government spending and deficit restraint, inflation targeting and a free-floating exchange rate," Moody's said. "These are broadly the mix of policies that have supported South Africa’s investment grade rating for 20 years."