SandP upgrades SA's credit rating outlook to positive

• Published date: 23 May 2022
• Publication title: South African Official News

Government has welcomed rating agency Standard andPoor's (SandP) 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.

According to SandP, recent favourable terms of trade in South Africa have improved the external and fiscal trajectory, while the country's reasonably large net external asset position, flexible currency and deep domestic capital markets provide strong buffers against shifts in external financing.

In addition, the agency 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.

SandP also noted some improvement on the implementation of key reform targets under Operation Vulindlela - established in October 2020 as...