NEWS: SA Could Be Heading for a Credit Rating Upgrade
Economic News
South Africa could soon receive a credit rating upgrade, according to experts at several major international banks.
Credit rating agencies assess how likely a country is to repay the money it borrows. Bank of America believes Moody’s is the most likely to upgrade South Africa, while S&P may also improve its rating.
Rating agency Fitch already upgraded the country in June 2026. A further upgrade would bring South Africa one step closer to escaping its current “junk status” (a rating that indicates higher risk for investors).
There is growing optimism that South Africa could regain its investment grade rating within the next few years. Investec believes there is a better than 50% chance of this happening within two years, while Bank of America expects it before 2029.
But rating agencies will want to see continued improvements in government finances, including less borrowing, lower debt levels and stronger economic growth. Better ratings will likely help South Africa attract more investment and borrow money at lower interest rates.
