| The National Treasury hereby advises that S&P has revised its credit rating/credit rating outlook in respect of the RSA to positive from stable and affirmed the long-term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, respectively. |
| According to S&P, the positive outlook reflects the agency’s view that increased political stability following the May 2024 general elections and impetus for reform could boost private investment and GDP growth. S&P further states that since the formation of the new broad coalition of 11 political parties under the Government of National Unity (GNU), debt yields and portfolio inflows have improved, leading to easing financing conditions and currency strengthening. |
| S&P further stated that despite the Government publishing weaker fiscal projections in the most recent Medium-Term Budget Policy Statement (MTBPS) compared with those it published in the February 2024 Budget Review, the agency sees higher fiscal policy predictability regarding efforts towards achieving primary surpluses and fiscal consolidation. |
| The government’s strategy focuses on achieving fiscal sustainability, supporting economic growth and critical social services, and addressing significant fiscal and economic risks. The four pillars of economic growth strategy are: (i) maintaining macroeconomic stability; (ii) implementing structural reforms; (iii) building state capability; and (iv) supporting growth-enhancing public infrastructure investment. |
| The S&P announcement regarding RSA’s credit rating is available from the following websites: |
| https://search.app?link=https%3A%2F%2Fdisclosure.spglobal.com%2Fratings%2Fen%2Freg ulatory%2Farticle%2F- |
| %2Fview%2Ftype%2FHTML%2Fid%2F3285053&utm_campaign=aga&utm_source=agsadl1 |
| %2Cagsadl6%2Csh%2Fx%2Fgs%2Fm2%2F4 |
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| https://www.treasury.gov.za/comm_media/press/2024/2024111501%20Media%20Statement |
| %20-%20Government's%20Response%20to%20S&P%20Global%20Ratings.pdf |
| For the full document click the link below: |
| SA: Revision Of The Republic Of South Africa’s (“Rsa”) Credit Rating By S&P Global Ratings (“S&P”) |
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