JOHANNESBURG, May 23 (Xinhua) -- Global rating agency Moody's Ratings has revised South Africa's sovereign rating outlook to "positive" from "stable" for the first time since 2007, while affirming the country's long-term domestic and foreign-currency ratings at Ba2, the country's National Treasury said.
In a statement issued on Friday, the National Treasury welcomed the decision, saying it reflected improving confidence in South Africa's public finances and the government's commitment to fiscal consolidation and structural reforms.
Moody's said the positive outlook reflected South Africa's gradually strengthening fiscal performance and sustained commitment to structural reforms, with prospects of increasingly tangible results.
The ratings agency expects a rising primary surplus and gradually improving debt-service costs to stabilize the government debt burden in the near term. It also expects stronger investment, supported by ongoing reforms, to gradually raise real gross domestic product growth to around 2 percent by 2028.
"We continue to focus on our two fiscal objectives of ensuring that revenue continues to be ever higher than non-interest spending and maintaining a debt-to-GDP ratio that comes down from the current year onwards," said Duncan Pieterse, director-general of the National Treasury.
The National Treasury said the revision to a positive outlook is Moody's first upward outlook revision for South Africa since 2007, which was followed by an upgrade of the rating itself in 2009.
Moody's also warned that risks remain, including weak labor market conditions, infrastructure constraints, inequality and elevated debt-service costs. It also noted that the ongoing Middle East conflict could pose risks to near-term growth, though it expected South Africa's policy response to remain measured and macroeconomic stability to be preserved.
The National Treasury said the government remains committed to reducing public debt while maintaining social spending and accelerating structural reforms to support inclusive growth and job creation. ■
