S&P keeps South Africa in 'junk' status, sees post-election reforms

JOHANNESBURG (Reuters) - S&P Global Ratings kept South Africa's foreign- and local-currency credit ratings in 'junk' territory with a stable outlook late on Friday, saying the new government was expected to focus on reforms to revive the economy. Newly elected President Cyril Ramaphosa has pledged to rekindle growth by fixing state firms, easing policy uncertainty and luring back foreign investment that dried up in the last decade under his predecessor Jacob Zuma. S&P kept the country's long-term foreign-currency rating at 'BB', while the long-term local-currency rating was held at 'BB+'.

Reuters May 26, 2019 00:05:16 IST
S&P keeps South Africa in 'junk' status, sees post-election reforms

SP keeps South Africa in junk status sees postelection reforms

JOHANNESBURG (Reuters) - S&P Global Ratings kept South Africa's foreign- and local-currency credit ratings in "junk" territory with a stable outlook late on Friday, saying the new government was expected to focus on reforms to revive the economy.

Newly elected President Cyril Ramaphosa has pledged to rekindle growth by fixing state firms, easing policy uncertainty and luring back foreign investment that dried up in the last decade under his predecessor Jacob Zuma.

S&P kept the country's long-term foreign-currency rating at 'BB', while the long-term local-currency rating was held at 'BB+'. Both carry a stable outlook. The ratings agency made the same assessment in November 2018 after slashing the rating in 2017.

Fitch Ratings also rates Pretoria's debt as junk. Of the top three ratings firms only Moody's classifies the sovereign as investment-grade.

"The stable outlook reflects our view that, with the elections now over, the South African government will pursue some reforms and attempt to improve economic growth and try and contain fiscal deficits," the firms said in a statement.

Ramaphosa was sworn in as South Africa's president on Saturday, vowing to create jobs and tackle deep-rooted corruption that has strangled economic growth.

(Reporting by Mfuneko Toyana; Editing by Helen Popper)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.