S&P Global Ratings keeps its position on SA unchanged
S&P's decision is in line with expectations that it would adopt a wait-and-see approach after the general elections
S&P Global Ratings kept its rating unchanged on Friday, giving President Cyril Ramaphosa leeway to move forward with reform. This is in line with expectations that the ratings agency would adopt a wait-and-see approach following the ANC's victory at the polls earlier in May. 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, and maintained a stable outlook. "The stable outlook reflects our view that, with the elections now over, the South African government will pursue some reforms and attempt to improve economic growth and try and contain fiscal deficits," S&P said in a statement on Friday night. "Our ratings on SA are constrained by the weak pace of economic growth, particularly on...
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