Standard and Poor's affirms South Africa's long-term foreign credit rating at 'BBB+' and local currency credit rating at 'A': Outlook revised to negative from stable
28 Mar 2012
Standard and Poor's (S&P) today affirmed the long term foreign and local currency credit ratings of South Africa at ‘BBB+' and ‘A' respectively. The outlook has been revised from stable to negative.
National Treasury notes S&P's rationale for changing the outlook to negative. However, it must be re-emphasised that the 2012 Budget was tabled against the backdrop of an uncertain global economy. Notwithstanding this, South Africa has continued to demonstrate resilience.
The 2012 Budget balances the support to the economy with a gradual consolidation of South Africa's fiscal path to ensure sustainable public finances.
The budget deficit is projected to decline to three percent of gross domestic product (GDP) over the medium term and net government debt is expected to peak at 38.5 percent of GDP in 2014/15. This is consistent with government's commitment to fiscal consolidation over the medium term.