The South African Treasury released a statement on Friday evening welcoming S&P Global Ratings for affirming the country’s credit ratings – for now.

The Treasury said South Africa’s long and short-term foreign and local currency bond ratings at ‘BBB-/A-3’ and ‘BBB+/A-2’ respectively. Furthermore, the
foreign currency bond rating remains one notch above sub-investment grade
whereas the domestic currency bond rating remains three notches above subinvestment

While S&P affirmed South Africa’s credit rating, their outlook “remained negative”. S&P cited concerns about economic growth and warned it could lower the rating by year-end or next year if policy measures do not turn the economy around, the Treasury added.

“Government notes and welcomes S&P’s decision to affirm South Africa’s credit
The benefit of this decision is that South Africa is given more time to
demonstrate further concrete implementation of reforms that are underway aimed at
achieving higher levels of inclusive growth and place public finances on a
sustainable path,” the Treasury wrote in a statement.

“The rating outcome demonstrates that South Africans can unite, especially during
difficult times, to achieve a common mission. 

“In this regard, government thanks all
social partners for their efforts towards achieving this positive outcome and urges
our partners to continue its close working relationship with government over the
period ahead.”

The government, via the Treasury’s statement, pledged to implement the 9-point plan as well as implement other measures to boost the South African economy, and listed some key areas of focus.

“Government, business and labour will collectively intensify efforts aimed at: i) Restoring confidence and boosting investment amongst local and international
ii) Unblocking obstacles to faster employment growth in key sectors; and
iii) Undertaking fiscal, State-Owned Companies (SOCs) and regulatory reforms.”

“United effort towards concrete delivery in these priorities will lay a solid foundation
for all South Africans to break through, in a sustainable manner, the cycle of poverty,
inequality and unemployment,” the Treasury said.