S&P affirms South Africa, Development Bank

Standard & Poor's said it affirmed the BBB+ long-term and A-2 short-term foreign-currency, A+ long-term and A-1 short-term local-currency sovereign credit ratings and the zaAAA long-term and zaA-1 short-term national scale ratings on the Republic of South Africa.

The outlook is stable.

S&P also said it affirmed all ratings on the Development Bank of Southern Africa Ltd., which are equalized with the ratings on the sovereign reflecting the government's sole ownership of the institution.

The ratings on South Africa are supported by its prudent macroeconomic policies, a moderate debt burden and strong and stable political institutions, the agency said.

These factors are balanced by relatively vulnerable external finances because of continued reliance on portfolio inflows and severe structural socioeconomic weaknesses, including income disparities, poverty, high unemployment and the unfolding HIV/AIDS pandemic, S&P added.

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