Ratings agency Standard and Poor’s (S&P) has affirmed South Africa’s long-term credit rating at BBB and local currency credit rating at A-, the National Treasury said on Friday.<\/p>\n
“S&P said the negative outlook reflected their view that South Africa’s ratings are constrained by a sizeable current account deficit, which is funded by potentially volatile portfolio flows,” said spokeswoman Phumza Macanda.<\/p>\n
“According to S&P, South Africa’s recent lacklustre economic performance, external imbalances, and labour tensions could affect its macroeconomic policy framework beyond the agency’s expectations.”<\/p>\n
Macanda said it was government’s view that the rating opinion did not adequately take note of progress made in the issues raised by S&P in its initial downgrades in 2012.<\/p>\n
“Government will continue to invest in infrastructure with the view of enhancing the productive capacity of our economy and the competitiveness of our industries.”<\/p>\n
Macanda said these investments would be mindful of fiscal sustainability as tabled in the 2013 medium-term budget policy statement.<\/p>\n
According to the statement, government committed itself to increasing efficient spending across all government departments.<\/p>\n
S&P cuts South Africa\u2019s rating<\/a><\/strong><\/p>\n