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Global ratings agency, S&P has maintained the South Africa’s sovereign credit rating at double-B, keeping its outlook positive.
The agency expects improved tax collections and strict spending controls to speed up fiscal consolidation through 2029. This is expected to reduce government debt as a percentage of Gross Domestic Product (GDP).
S&P also praises the government’s stronger revenue performance. It says that the extra funds allowed the state to shield vulnerable households and also helped introduce recent temporary fuel levy relief – without damaging its long-term financial health.
The National Treasury has welcomed the decision, which stands out after several global peers faced downgrades due to ongoing conflict in the Middle East.
Last week, Moody’s upgraded South Africa’s economic outlook to positive.
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