South Africa could earn its first credit rating upgrade in nearly 20 years as S&P Global prepares to review the country’s sovereign rating, reflecting investor optimism over fiscal reforms and policy improvements. Since 2020, the nation has been rated sub-investment grade, but analysts now point to primary budget surpluses, controlled debt levels, and a 3% inflation target as reasons for a potential boost to “BB” from “BB-“. The announcement could attract billions in investment, though low economic growth remains a challenge. Market reactions have been positive, with the rand strengthening and bond yields falling. While the upgrade would still leave South Africa below investment grade, it signals progress in restoring fiscal credibility and institutional stability.
Reuters
