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."

ZAR/USD
17.09
(-1.19)
ZAR/GBP
21.76
(-0.79)
ZAR/EUR
19.89
(-0.74)
ZAR/AUD
12.01
(-0.68)
ZAR/JPY
0.16
(-0.97)
Gold
1865.96
(-0.04)
Silver
23.10
(-0.34)
Platinum
852.00
(+0.65)
Brent Crude
42.26
(+0.47)
Palladium
2204.64
(-0.02)
All Share
53587.11
(-1.22)
Top 40
49547.74
(-1.16)
Financial 15
9401.28
(-1.95)
Industrial 25
72949.70
(-1.72)
Resource 10
53453.42
(-0.10)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1365 votes
It depends on how the funds are used.
73% - 8840 votes
No. We should have gotten the loan elsewhere.
16% - 1954 votes
Vote