South Africa - Credit Rating

Credit rating agency S&P revised South Africa’s outlook to "positive" from "stable" while affirming its foreign-currency rating at BB-/B and BB/B for local currency, citing plans for accelerated economic reforms by the new government of national unity and a pickup in private investments. S&P projected South Africa's GDP to grow to 1.4% over 2025-2027 from 1.0% this year, boosted by improvements in electricity as load-shedding has eased, alongside increased private participation in the railway, ports, and water sectors. The coalition government, formed in June after the African National Congress lost its parliamentary majority for the first time in 30 years, has boosted business confidence. The agency added that debt yields and portfolio inflows have improved since the formation of the government, easing financing conditions and strengthening the currency. Moody's credit rating for South Africa was last set at Ba2 with a stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of South Africa thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for South Africa as reported by major credit rating agencies.