Global ratings agency Moody’s Investors Service has affirmed South Africa’s sovereign credit rating at Ba2, two notches below investment grade, with a stable outlook.
The decision reflects a familiar mix of deep-rooted challenges and recent green shoots. Moody’s highlighted persistent low growth potential driven by ageing infrastructure, a rigid labour market, stark socioeconomic inequalities and the lingering fiscal burden of state-owned enterprises.
On the positive side, the agency acknowledged South Africa’s improved economic resilience in 2025 and tangible progress on structural reforms, particularly the sustained end to load-shedding and better performance at ports and rail networks.
“Future rating action will depend on whether higher, sustainable economic growth materialises and reforms prove durable,” Moody’s said.
South Africa has now held the Ba2 rating since March 2020.