SA gets another reprieve as S&P keeps credit rating unchanged
S&P Global Ratings also maintained its stable outlook, despite having cause for concern about the country’s economic growth
S&P Global Ratings maintained its outlook on SA as stable on Friday, in line with expectations that the rating agency would give the country another reprieve. It is one of two agencies that rate the country’s creditworthiness at sub-investment grade. A fall further into junk territory would have increased the country’s cost of borrowing. S&P kept the rand-denominated debt rating at BB+ — the first notch of sub-investment grade — and the foreign currency rating at BB, which is two notches below investment grade, it said on Friday. The rating agency warned, however, that “anemic economic growth in 2018 and high contingent liabilities continue to weigh on SA’s fiscal prospects”. It did also say that “The new government is pursuing a series of economic reforms that should help boost the economy from 2019, despite structural impediments, chronic skills shortages, and high unemployment.” Following the medium-term budget policy statement (MTBPS) in October, S&P said SA was sending out the ...
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