Standard & Poor's Ratings Services on Friday lowered the long-term foreign currency sovereign credit rating on South Africa to 'BBB' from 'BBB+' and the long-term local currency rating to 'A-' from 'A', the ratings agency reported.
The short-term local currency rating was downgraded to 'A-2' from 'A-1' and the short-term foreign currency rating was affirmed at 'A-2'. The outlook remained negative.
“In our view, the strikes in South Africa's mining sector will likely feed into the political debate in the run-up to the 2014 elections, which may increase uncertainties,” S&P said.
“We also expect that South Africa's underlying social tensions will increase spending pressures and reduce fiscal flexibility for the government,” it said.
In late September, Moody’s Investors Service downgraded South Africa’s government bond rating to Baa1 from A3. The outlook remained negative.