S&P affirms SA rating, keeps stable outlook

S&P Global Ratings affirmed South Africa’s sub-investment grade credit rating and kept its stable outlook on Friday, saying the country’s improved economic growth remained tentative and that the government’s debt burden was still on a rising path.

S&P rates South Africa’s foreign currency debt ‘BB’ and its local currency debt ‘BB+’, having downgraded the country to “junk” status last year following a deterioration in the economic outlook and public finances.

“The stable outlook reflects our view that economic growth will pick up modestly over the next year, while government debt will remain above 50% of GDP,” S&P said in a statement.

“The outlook also reflects our view that the government will pursue economic and social reforms.”