Government has noted the decision by Standard and Poor’s (S&P) to reaffirm the country’s long-term local and foreign currency debt rating at BB- minus and BB respectively with a stable outlook.

In April, S&P downgraded South Africa’s credit rating further into a non-investment-grade territory, saying coronavirus (COVID-19) related pressures would have significant adverse implications for the country’s already-ailing economy and for tax revenues.

According to S&P South Africa’s fiscal position remains weak exacerbated by the R500 billion stimulus package announced by President Cyril Ramaphosa to combat the economic impact of COVID-19.

S&P says this means government will continue to battle with a large debt burden.

In a statement Treasury says next month government will release a special adjustments budget that will outline a range of economic reform proposals and measures to stabilise public finances.