S&P Global has upgraded South Africa’s long-term foreign-currency sovereign rating to BB from BB-, marking the first upgrade in nearly two decades. The move reflects improved economic prospects, a stronger fiscal position, and a reduction in contingent liabilities linked to state-owned enterprises, as reported by Investing.com.
The rating agency specifically cited financial stabilization at Eskom, progress in freight logistics, and reforms in the energy sector as key factors underpinning the upgrade, according to Reuters.
S&P also raised the country’s local-currency long-term rating to BB+ and maintained a positive outlook, indicating potential for further upgrades if South Africa sustains its reform momentum, Investing.com highlighted.
The rating revision coincides with broader government efforts, including fiscal consolidation, enhanced revenue collection, and measures to stabilize public debt, which South Africa’s Treasury says have strengthened investor confidence, as stated in an official government release.
