S&P upgrades South Africa ratings outlook after GNU
The rating agency Standard and Poor’s (S&P) Global revised South Africa’s credit outlook from stable to positive on Friday.
The agency says increased political stability following the May elections could boost private investment and GDP growth.
In 2017, South Africa's sovereign credit rating was downgraded to junk status due to political instability.
According to S&P, despite the government publishing weaker fiscal projections in the most recent Medium Term Budget Policy Statement, the agency sees higher fiscal policy predictability regarding efforts towards achieving primary surpluses and fiscal consolidation.
"Government notes and welcomes S&P’s decision to revise South Africa’s outlook to positive from stable and affirmed the sovereign’s long-term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, Respectively," Treasury said in a statement
"Government’s strategy focuses on achieving fiscal sustainability, supporting economic growth and critical social services, and addressing significant fiscal and economic risks."
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