By Zuko Komisa
S&P has downgraded South Africa’s credit rating outlook.
S&P Global Ratings has downgraded its outlook on South Africa to stable from positive, because of severe power cuts.
According to Reuters, S&P confirmed South Africa’s ‘BB-/B’ foreign currency sovereign credit ratings on Wednesday night, but it issued a warning that it might lower the rating if the government’s ongoing measures to deal with the power crisis do not go according to schedule.
“Downside risks to this forecast remain prominent since South Africa has been unable to fully capitalise on the global upswing in commodity prices while continued electricity shortages signal a potentially difficult winter ahead,” S&P Global said.
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A record number of power outages occurred in the nation last year, and more than 200 hours of load shedding are expected this year, with outages extending up to 10 hours per day.
S&P’s decision was recognized by the national treasury, which also reaffirmed its commitment to reducing rolling power outages, which have been a problem for homes and businesses for more than ten years.



