Overview
- S&P raised the sovereign long-term foreign-currency rating to BB from BB- and the local-currency rating to BB+ from BB, and increased the transfer and convertibility assessment to BBB-.
- S&P kept a positive outlook and outlined paths for further upgrades or a shift to stable based on the pace of fiscal consolidation, reform delivery, and growth outcomes.
- The agency expects a third consecutive primary budget surplus in fiscal 2025 after revenue outperformed targets, with consolidation projected to continue through 2028.
- Eskom’s first profit in eight years and ongoing reforms are seen reducing contingent-liability risks and the likelihood of further state support.
- The National Treasury welcomed the decision as supportive for borrowing costs and confidence, though the rating remains below investment grade and attention turns to Moody’s December review.