S&P did not consider development: Treasury

Reuters

The Standard & Poor's building is seen in New York.

Johannesburg - Ratings agency Standard and Poor's (S&P's) did not consider recent positive developments in South Africa when it affirmed the country's credit rating and negative outlook, National Treasury said on Wednesday.

“Although National Treasury notes S&P’s rationale... government’s view is that the rating opinion did not take adequate account of the positive developments over the past six months since the previous rating announcement,” it said in a statement.

S&P's affirmed South Africa’s long term foreign currency credit rating at BBB and local currency credit rating at A-2. It also maintained the negative credit outlook on the rating.

Treasury said the adoption of the National Development Plan (NDP) by the African National Congress (ANC), more details on the NDP in the 2013 Budget, the “peaceful” ANC election process in Mangaung and the re-affirmation of the economic policies in the state-of-the-nation address were not acknowledged.

“Government has re-affirmed its commitment, in the 2013 Budget, to bring down the budget deficit and stabilise the net government debt as a percent of GDP (Gross domestic product) to slightly above 40 percent,” it said.

“While there are risks to growth, our fiscal framework remains realistic and achievable.”

It said the government would continue to invest in infrastructure, while enhancing the productive capacity of the economy and the competitiveness of industries.

“This will be done in a manner consistent with fiscal sustainability.” - Sapa