S&P: South Africa to negative

Standard & Poor's said it revised the outlook on the Republic of South Africa to negative from stable.

The agency also said it affirmed the long- and short-term foreign-currency ratings on South Africa at BBB+/A-2 and the long-and short-term local-currency ratings at A/A-1.

S&P also affirmed the long- and short-term South Africa national scale ratings at zaAAA/zaA-1.

The transfer and convertibility assessment is unchanged at A.

The negative outlook reflects the potential for a downgrade if economic and social problems feed into the political debate in the run-up to the 2014 national and provincial elections, putting pressure on the policy framework, S&P said.

South Africa's near-term political pressures have diminished since the African National Congress put the leadership of its youth league, which advocated nationalization of the country's mining sector, through a disciplinary process, the agency said.

Nevertheless, S&P said it thinks that looming economic and social pressures could gradually affect the country's policy framework.

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