South Africa Outlook Revised To Negative On Worsening Fiscal And Debt Trajectory; Ratings Affirmed

Overview
• Low GDP growth, upwardly revised fiscal deficits, and a growing debt burden are damaging South Africa's fiscal metrics.
• Unless the government takes measures to control the fiscal deficit and we see sustained reform momentum, we view debt as unlikely to stabilize within our three-year forecast period.
• We are therefore revising our outlook on South Africa to negative from stable.
• We are also affirming our long- and short-term foreign currency ratings on South Africa at 'BB/B', our local currency ratings at 'BB+/B', and our national scale ratings at 'zaAAA/zaA-1+'.

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