Business & Finance
South Africa Already Upgraded by Bond Market as Rating Firms Lag
Key Points
South Africa Already Upgraded by Bond Market as Rating Firms Lag South African authorities are focused on hitting budget targets rather than pleasing credit-rating firms, according to the government’s top finance official — and the reward is a bond market that’s already pricing the country’s debt as investment grade. Africa’s largest economy was cut to junk in 2017 after years of institutional erosion, fiscal deterioration, and rampant corruption known as “state capture.” The government has...
South Africa Already Upgraded by Bond Market as Rating Firms Lag
South African authorities are focused on hitting budget targets rather than pleasing credit-rating firms, according to the government’s top finance official — and the reward is a bond market that’s already pricing the country’s debt as investment grade.
Africa’s largest economy was cut to junk in 2017 after years of institutional erosion, fiscal deterioration, and rampant corruption known as “state capture.” The government has now reversed spending overruns into surpluses, with debt ratios set to decline from the current fiscal year.