Tuesday, June 07, 2016

Statement on S&P Ratings of South Africa
3 June 2016

S&P Global Ratings (S&P) has affirmed South Africa's long and short term foreign and local currency bond ratings at 'BBB-/A-3' and 'BBB+/A-2' respectively. The foreign currency bond rating remains one notch above sub-investment grade whereas the domestic currency bond rating remains three notches above sub- investment grade.

The decision is a reward for the collective efforts of all South Africans who did everything to put South Africa first in placing our case before the rating agencies. The President and the Minister of Finance have been working with a number of CEOs and the labour movement in trying to turn the economy around and building confidence on the economy.This comes shortly after Moody's confirmed confidence in our economy

The ANC salutes the social partners for demonstrating unity of purpose and further urge to continue to work together on matters such as the Mining Charter, the labour reforms in Nedlac etc.This is more important given the fact that S&P maintained the negative outlook on the rating, citing concerns about economic growth and warned it could lower the rating by year-end or next year if policy measures do not turn the economy around. Alternatively, S&P could revise the outlook to stable if they observe policy implementation that leads to an improved business confidence environment and increased private sector investment and ultimately result in higher levels of growth.

The ANC NEC held on 28th to 30 May adopted a series of resolutions to support growth and supports governments 's fiscal stance focusing on expenditure ceiling,raising tax revues and associated cost containment measures.

The next six months are critical in demonstrating the will and ability to turn things around.

Issued by
Enoch Godongwana
Chairperson of ANC NEC Subcommittee on Economic Transformation

Zizi Kodwa 0823304910
Khusela Sangoni 0728545707

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