S&P Global โคUpgrades South Africa’s Credit Rating
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Published november 15,2025
Johannesburg,Southโ Africa – S&P Global Ratings has upgraded South Africa’s long-term foreign currency credit rating to BB from BB-,according to a report releasedโ today. This upgrade reflects positive developments following the recent Medium-Term budget Policy Statement (MTBPS), the country’s removal from the Financial Actionโข Task Force (FATF) grey list, and indications of improved economic growth.
Theโค upgrade brings South Africa’s rating within two notches โคof investment grade and aligns โคit with Moody’s rating for the first time in several โyears. S&P Global also maintained a positive outlook on the rating, suggesting the possibility of further โimprovements contingent โon sustained reform efforts and continued โคfiscal consolidation.
A Decade of Downgrades Reversed
this decision represents a important shift in South Africa’sโ creditworthiness, marking a turning point after more โthan a decade of successive downgrades that commencedโ in 2012.Theโ previous downgrades had โconsiderably impacted investor confidence and increased borrowing costs for the nation.
Factors Driving the Upgrade
The upgrade occurs โคduring a period of renewed โคinvestor interest in โemerging markets, influenced by shifting expectations regardingโ US interest rates. South Africa is benefiting from โa combination of factors, including prudent fiscal management, โimprovements in electricity supply,โ and ongoing reforms in critical sectors likeโฃ logistics.
Implications โคfor South Africa
The improved credit ratingโข is expected to โpotentially lower borrowing costs for the South African government โขand bolster foreign investment in South African assets. However,it’s crucial to note that South Africa remains classified as “junk” status and will require continued commitment toโฃ structural reforms to regain investment-grade status.
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