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S&P Global Ratings has kept South Africa's credit ratings unchanged. The US credit rating agency was scheduled to review South Africa's foreign and local currency ratings on Friday. No change was announced.
In November last year, S&P affirmed South Africa's credit ratings and maintained a stable outlook.
It expected that while private sector power generation would boost growth this year, Transnet's woes will depress the economy.
At the time, the agency predicted that the ANC would lose its majority in this month's elections but expected “broad policy continuity” even if that happened.
S&P has a “BB-/B” rating on South Africa’s foreign currency debt and a “BB/B” on local currency debt.
Despite growing state debt, S&P highlighted South Africa’s continued strengths last year: a flexible exchange rate, an actively traded currency, deep capital markets and a credible central bank. It credited the Reserve Bank’s "proactive" rate hikes for cooling inflation.
However, it was concerned by the perilous financial positions of state-owned enterprises.
This week, Treasury comfirmed to Bloomberg that South Africa likely achieved a primary budget surplus — where revenue exceeds non-interest expenditure — for the first time in 15 years.
