Ratings agency Standard & Poor’s has decided to keep South Africa’s credit rating a notch above junk status with a negative outlook.
The agency has warned that any signs of political upheaval undermining economic policy could trigger a downgrade later in the year.
A cut to below investment grade would have pushed up South Africa’s borrowing costs, making it harder to plug a budget deficit.
The move would’ve lumped South Africa with emerging market peers Brazil, Russia and Turkey.
Fitch is expected to issue its own review next week.
South Africa last month dodged a downgrade from Moody’s.
The rand has jumped to R15,29 after the news.