We are affirming the 'BBB+/A-2' foreign currency and 'A+/A-1' local currency ratings on the Republic of South Africa. The negative outlook reflects our view of downside macroeconomic risks to our base case, combined with political uncertainty surrounding the prospects for fiscal consolidation once growth recovers. On Dec. 17, 2009, Standard&Poor's Ratings Services affirmed its 'BBB+/A-2' foreign currency and 'A+/A-1' local currency ratings on the Republic of South Africa. The outlook remains negative. The affirmation reflects South Africa's prudent macroeconomic policies, a moderate (albeit rising) debt burden, and stable political institutions. These are balanced by the country's continued high reliance on external portfolio inflows in the context of a significant current account deficit, and severe structural socioeconomic weaknesses. Against
