S&P keeps South Africa credit ratings below investment grade

S&P Global Ratings kept South Africa’s foreign-currency and local-currency credit ratings at below investment grade on Friday.

“Anaemic economic growth in 2018 and sizable contingent liabilities continue to weigh on South Africa’s fiscal prospects and debt burden,” S&P said, adding that it had a “stable” outlook on the ratings.

The long-term foreign-currency rating stayed at ‘BB’, while the local-currency rating stayed at ‘BB+’.

S&P and Fitch rate South Africa in “junk” status, driving its cost of borrowing higher.