S&P Global Ratings has affirmed South Africa's credit rating. U.S. credit rating agencies were scheduled to review South Africa's foreign and local currency ratings on Friday. No changes were announced.
In November last year, S&P affirmed South Africa's credit rating, keeping the outlook stable.
It predicted private sector power generation would boost growth this year, while Transnet's woes would weigh on the economy.
At the time, the agency predicted the ANC would lose its majority in this month's elections, but even if that happened it expected “a wide range of policy continuations”.
S&P rates South Africa's foreign currency debt at 'BB-/B' and its local currency debt at 'BB/B'.
Despite rising national debt, S&P last year highlighted South Africa's continued strengths, including a flexible exchange rate, an actively traded currency, a strong capital market and a reliable central bank. It credited the Reserve Bank's “aggressive” interest rate hikes with cooling inflation.
However, they were concerned about the precarious financial situation of state-owned enterprises.
This week, the Treasury confirmed to Bloomberg that South Africa is likely to achieve a primary surplus (revenue exceeds non-interest expenditure) for the first time in 15 years.
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