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Johannesburg - Japan-based rating agency, Rating and
Investment Information (R&I) announced on Friday that it has affirmed South
Africa's foreign currency issuer rating of A-, and domestic currency issuer
rating of A.
The outlook remains stable.
The outlook on South Africa's rating has been stable since April 2010.
R&I indicated that it had affirmed the stable outlook
because it believed South Africa had achieved solid growth based largely on
domestic demand.
The rating agency had also indicated that government was
unlikely to face major challenges in achieving fiscal deficit reduction, and
capital inflows remained solid even as the global financial environment
underwent major adjustments.
R&I also welcomed the introduction of government fiscal
guidelines to maintain fiscal discipline.
On structural issues, the rating agency noted that
government would need to show strong commitment in implementing consistent
policies to address persistent social challenges, such as unemployment.
The National Treasury welcomed the rating outcome, saying the affirmation of South Africa's rating was seen as a sign of confidence in South Africa's credit story.
