On June 19, 2006, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term and 'A-2' short-term foreign currency, and its 'A+' long-term and 'A-1' short-term local currency sovereign credit ratings on the Republic of South Africa. The outlook is stable. At the same time, the 'zaAAA' long-term and 'zaA-1' short-term national scale ratings on South Africa were affirmed. Despite turbulence in South African financial markets in recent weeks, the ratings on the sovereign remain supported by its prudent macroeconomic policies, a moderate debt burden, and strong and stable political institutions. These are balanced by relatively vulnerable external finances and severe structural socioeconomic weaknesses, including income disparities, poverty, high unemployment, and the unfolding HIV/AIDS pandemic. South Africa has not escaped the
