Saturday, 23 November 2019 06:45

S&P Global Ratings changed its outlook on South Africa's sovereign credit rating to negative, citing low GDP growth, rising fiscal deficits and a growing debt burden. 

However the rating agency did not downgrade SA further into junk and It warned that it may lower the rating if it observed continued fiscal deterioration due to higher pressure on spending, rising interest costs.

S&P in November 2017 already downgraded SA's credit rating to junk and only Moody's still has SA at investment grade.

On Friday S&P said its SA rating was constrained by low GDP per capital growth, weak economic expansion, a large and rising government debt burden, and sizable contingent liabilities primarily tied to debt-laden power utility Eskom.

"The ratings are supported by the country's monetary flexibility, well-capitalized and regulated financial sector, and deep capital markets. South Africa also has moderate external debt, in particular low levels of external debt denominated in foreign currency," it said