Overview
- S&P raised the foreign‑currency long‑term sovereign rating to BB from BB‑, leaving South Africa two notches below investment grade.
- The agency also upgraded the local‑currency rating to BB+ from BB, which is one notch below investment grade.
- S&P cited stronger growth prospects, an improved fiscal outlook, and lower contingent liabilities following operational gains at Eskom, which has returned to profit for the first time in eight years.
- South Africa’s National Treasury welcomed the move, saying it expects the upgrade to support lower borrowing costs and reinforce investor confidence.
- Investor sentiment has been supported by a stronger mid‑year budget trajectory, a new 3% inflation target, and South Africa’s removal from a global anti‑money‑laundering gray list.