BoFA sees possible S&P upgrade for South Africa after mid-term budget despite fiscal pressures

THE Bank of America (BofA) has flagged a potential credit rating upgrade for South Africa later this month, saying that S&P Global Ratings could lift the country’s sovereign rating to ‘BB’ if the government delivers stronger economic growth and successfully reduces its debt-to-GDP ratio.

- SIPHELELE DLUDLA

In its latest note released on Friday, BofA said the upgrade could come after the tabling of the Medium-Term Budget Policy Statement (MTBPS), expected later this month, even as the country continues to face fiscal headwinds and structural constraints.