South Africa remained positive rating from S&P
2022.11.20 07:57
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South Africa remained positive rating from S&P
Budrigannrews.com – The S&P rating maintained a positive outlook for South Africa on Friday. The agency expects the net position of external creditors and the implementation of some structural reforms could help ease economic pressure.
The S&P raised its outlook from stable to positive in January, citing an improvement in its fiscal trajectory.
“Better-than-expected government revenue supported the fiscal situation this year, but fiscal pressure remains,” the rating agency said.
South Africa’s budget deficit will shrink faster than before and debt will stabilize at lower levels, the treasury said.
While power and logistics bottlenecks continue to affect the South African economy, S&P is expanding private sector activity and government to reform key government-related companies We expect the potential to drive stronger growth outcomes.
South Africa suffered a sharp economic contraction during the COVID-19 pandemic, but the recovery over the past 2 years has been underpinned by the effects of a commodity windfall that has boosted government revenues.
On Friday, S&P also confirmed South Africa’s foreign currency rating “BB-/B” and local currency rating “BB/B”, which has not been investment grade since 2020.
