S&P keeps SA's credit rating unchanged at below investment grade

National Treasury has said government is focussing on regaining the country's investment grade status, after global rating agency S&P kept SA's sovereign credit rating unchanged at below investment grade on Friday evening. 

S&P affirmed the country’s long term foreign currency debt rating at ‘BB’ and its local currency debt rating at ‘BB+’. The outlook for both ratings was stable. 'BB' is the second rung of non-investment grade, while 'BB+' is one step below investment grade. 

In a statement S&P said that, in the wake of SA's election, government was "likely to focus more on new policy initiatives that will aim to support firmer economic growth and reform state-owned companies".

It added that SA's fiscal position remained weak, with "sizable fiscal deficits, a large debt burden, and sizable contingent liabilities, largely tied to the energy utility Eskom".

The credit ratings agency first downgraded SA's sovereign debt to non-investment grade, or junk, in late 2017.  Of the three major ratings agencies, only Moody's has kept SA at above investment grade. 

In response to the ratings action, National Treasury said it "fully recognises S&P’s assessment of challenges and opportunities the country faces in the immediate to long term".

"The main focus for government remains to regain South Africa’s investment-grade status to make the country an attractive investment destination."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.39
(-0.33)
ZAR/GBP
21.19
(+0.32)
ZAR/EUR
19.14
(+0.48)
ZAR/AUD
11.52
(+0.22)
ZAR/JPY
0.16
(+0.13)
Gold
1866.00
(-0.69)
Silver
23.20
(-0.88)
Platinum
848.00
(-2.47)
Brent Crude
39.48
(-4.73)
Palladium
2195.50
(-2.58)
All Share
51896.97
(-0.79)
Top 40
47576.46
(-0.74)
Financial 15
9756.70
(-2.69)
Industrial 25
72681.12
(-0.25)
Resource 10
47826.96
(-0.63)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
23% - 134 votes
No, I did not.
50% - 290 votes
My landlord refused
26% - 151 votes
Vote