S&P affirms South Africa

Standard & Poor's said it affirmed its long- and short-term foreign currency sovereign credit ratings on the Republic of South Africa at BBB-/A-3.

The agency also affirmed the BBB+/A-2 local currency ratings and the zaAAA/zaA-1 South Africa national scale ratings.

The outlook remains stable.

S&P said the ratings are supported by its view that president Jacob Zuma's second term will continue to ensure political and institutional stability and broad policy continuity. It will also ensure that South Africa will maintain fairly strong and transparent institutions and deep financial markets.

Nevertheless, GDP growth remains low, current account deficits remain relatively high, general government debt sizable, and external financing flows potentially volatile, the agency said.

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