S&P Global affirm South Africa’s outlook and credit ratings
Ratings agency S&P Global has guaranteed South Africa's borrowing ratings and a positive outlook.
S&P has put South Africa’s long term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, respectively.
According to the agency South Africa financial markets remain strong and has an improved fiscal and debt position.
In a statement government welcomed the decision, after the agency also noted the higher-than-expected tax revenue collection.
"The agency also sees the low external debt position, flexible currency, and deep domestic capital markets as fundamental credit
strengths that should cushion against external rising financing risks.
"Government's medium-term fiscal strategy prioritises achieving fiscal sustainability by narrowing the budget deficit and stabilising debt; increasing spending on policy priorities such as security and infrastructure, thereby promoting economic growth; and reducing fiscal and economic risks, including through targeted support to key public entities and building fiscal buffers for future shocks."
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