CAPE TOWN: Standard & Poor’s ratings services have affirmed its long-and short-term foreign currency sovereign credit ratings on South Africa at BBB-/A-3.
It also affirmed the ‘BBB+/A-2’ long-and short-term local currency ratings, while the outlooks remain stable. At the same time, it affirmed the ‘zaAAA/zaA-1’ South Africa national scale ratings. In a statement on Friday night, the rating agency said its ratings were supported by our assumption that South Africa will experience continued broad political and institutional stability and policy continuity.
“We also take into account our view that South Africa will maintain fairly strong and transparent institutions and deep financial markets. Nevertheless, reform efforts remain lacklustre, GDP growth low, current-account-deficit financing needs relatively high, general government debt sizable, and external financing flows potentially volatile,” S&P said.
