S&P retains SA’s credit rating and outlook but warns of risk ahead
The possibility now exists that the ratings agency could lower the country’s outlook following the budget speech next year
S&P Global Ratings has given SA a reprieve by maintaining its foreign currency rating at BB- with a stable outlook.
The agency did, however, warn in its report issued late on Friday that: “Lower revenue owing to softening commodity prices and rising spending pressures from the wage bill, potential support to financially weak state-owned enterprises (SOEs), the social relief of distress (SRD) grant, and debt service expenditure, will drive steady debt accumulation over the forecast period through to fiscal 2026.”..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.