Government welcomes R&I rating

Monday, April 16, 2018

Government has welcomed Rating and Investment Information’s decision to affirm South Africa’s long term foreign currency debt rating at BBB and local currency debt rating at BBB+.

Rating and Investment Information (R&I) revised the outlook to stable from negative.

The action notably confirms the sovereign as an investment grade credit.

According to R&I, the ratings affirmation reflects the following drivers:

  • The improved growth performance and prospects;
  • The announced fiscal adjustment plans in the 2018 Budget that would stabilise the debt burden; and
  • Changes in the administration that are expected to help eradicate policy uncertainty.

In its response, government said it recognises R&I’s assessment of the challenges and opportunities the country faces in the immediate to long-term.

“To improve South Africa’s investment and economic prospects, government continues to work diligently on practical steps to provide the necessary policy certainty, such as the finalisation of mining legislation.  Through the State of the Nation Address, the President [Cyril Ramaphosa] expressed strong commitment and will to fast-track the implementation and finalisation of key sectoral structural reforms, as well as reforms to State-Owned Companies,” said National Treasury.

Collaboration between government, business, labour and civil society is also yielding necessary interventions to positioning South Africa as an attractive investment destination, while also creating an enabling policy environment for inclusive economic growth.

“The rating action by R&I demonstrates that South Africans working together can achieve remarkable outcomes. Government would like to thank all stakeholders whose efforts ensured such a positive rating outcome,” said Treasury. - SAnews.gov.za

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