Overview
- S&P raised the long-term foreign-currency rating to BB from BB- and the local-currency rating to BB+ from BB, and kept the outlook positive.
- The agency cited stronger growth prospects, better-than-budgeted revenue performance, and reduced contingent liabilities tied largely to Eskom’s turnaround.
- Eskom posted its first profit in eight years, which S&P says lowers the likelihood of further government support for the utility.
- S&P projects real GDP growth of 1.1% in 2025 and about 1.5% on average over 2026–2028, with a third consecutive primary budget surplus expected.
- The rand strengthened after the announcement, S&P lifted the country’s Transfer & Convertibility assessment to BBB-, and further upgrades hinge on sustained reforms as the rating remains below investment grade.