South African president welcomes S&P's rating

 President Jacob Zuma on Saturday welcomed Standard and Poor's(S&P)decision to maintain South Africa's investment rating.

"I congratulate team South Africa constituted by government, business and labour for the sterling work that has been done over the last few months to turn our economy around," Zuma said in a statement.

On Friday, S&P 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.

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.

S&P's decision, which follows on the footsteps of yet another encouraging decision by Moody's, "demonstrates that working together we can reignite our economy, attract investment and create jobs for our people", said Zuma.

In early May, Moody's also decided to maintain South Africa's rating, refraining from downgrading the country's sovereign rating to sub-investment grade.

"Let us use these positive developments to work even harder together to move South Africa forward," said the president.

Another rating agency Fitch will make its decision, probably on June 8.

The SA government has been working hard to avoid a downgrade to junk status, which would drag the country's economy into recession.

source : xinhua