Bank of America (BofA) has said that South Africa could receive a credit rating upgrade from Standard & Poor’s (S&P) before the end of the month, citing improvements in fiscal management and resilience in key sectors.
In a report released this week, BofA analysts noted that South Africa’s fiscal outlook has strengthened, supported by stabilizing revenues and government efforts to contain spending. The bank said these developments could prompt S&P to revise the country’s rating upward from its current BB- status. “The prospects for an upgrade are improving, especially if fiscal discipline and reform momentum continue,” BofA economists wrote in the note, as cited by Bloomberg.
S&P last upgraded South Africa’s outlook to “positive” in May, signaling confidence in the government’s medium-term fiscal consolidation strategy. Data from Reuters indicate that the rand and local bond markets have shown relative stability in recent weeks, which analysts view as further evidence of investor confidence in South Africa’s macroeconomic direction.
An upgrade by S&P would mark a significant boost for Africa’s most industrialized economy, potentially lowering borrowing costs and attracting additional foreign investment.
