S&P Global Ratings lifts SA credit rating to positive
The agency expects South Africa to post a current account surplus for the third consecutive year due the rise in prices for key metals and mining exports.
Government has welcomed S&P’s decision to revise South Africa’s credit rating outlook to positive from stable, while affirming the long term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, respectively.
S&P highlighted recent favourable terms of trade, which it believes will “continue to support SA’s fiscal and external receipts, though the gains are partly offset by ongoing supply-side constraints to export volumes”.
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The agency also expects South Africa to post a current account surplus in 2022 for the third consecutive year, as prices for key metals and mining exports have risen significantly since the start of the Russia-Ukraine conflict.
Treasury says S&P also noted some improvement in the implementation of key reform targets under Operation Vulindlela, established to accelerate the implementation of structural reforms, as well as higher-than-expected tax revenue.
Moody’s Investors Service changed the outlook on SA’s rating to stable in April, while Fitch Ratings made the same move a few months before.
