S&P ratings boost lifts SA

ANCHOR: UPGRADE IS ‘A POSITIVE SIGNAL’

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S&P Global Ratings’ sovereign ratings upgrade of South Africa just ahead of the big G20 leaders’ summit and corporate-led B20 event “sends a positive signal of progress”, says JSE CEO Leila Fourie.

She was reacting to S&P’s Friday night announcement that SA’s sovereign foreign currency long-term credit rating has been upgraded to BB from BB-, with its outlook remaining positive.

This is also a positive sign for “the potential for further upgrades as the country builds momentum in fiscal credibility, growth and strong governance reform”, says Fourie.

“This progress indicates that the reform path is credible, that institutions are strengthening and that the macroeconomic framework is sound. This point of inflection supports SA’s position at a moment when the world has its eyes focused our country,” she adds.

According to the JSE, financial markets have been signalling a shift in sentiment for some time.