S&P affirms SA credit rating, keeps positive outlook on fiscal reforms

Thebe Mabanga

S&P has affirmed South Africa credit rating, praising the country’s credit reforms, debt stabilisation and revenue collection despite a poor growth outlook for the medium term. The ratings update was released on Friday night.

“Government notes the decision by S&P Global Ratings to affirm South Africa’s long-term foreign currency sovereign credit rating at ‘BB’ and local currency rating at ‘BB+’, and to maintain the positive outlook,” Treasury said in a statement.

The country remains in sub-investment grade, or junk status.

The affirmation comes after Moody’s last week moved South Africa’s outlook from stable to positive and S&P upgraded South Africa’s ratings in November last year. This was the first upgrade in 16 years.

S&P says it expects South Africa’s real GDP growth to rise slightly to 1.2 percent in 2026 and average 1.7 percent between 2027 and 2029. This is as reforms to electricity, logistics, water and local