On Aug. 1, 2005, Standard&Poor's Ratings Services raised its long-term foreign and local currency sovereign credit ratings on the Republic of South Africa to 'BBB+' from 'BBB' and to 'A+' from 'A', respectively, on improved macroeconomic stability. At the same time, the short-term foreign currency rating was raised to 'A-2' from 'A-3', and the 'A-1' short-term local currency rating was affirmed. The outlook is stable. The upgrade reflects South Africa's strong track record of macroeconomic management and improved prospects of sustainable higher GDP growth rates. The ratings on South Africa are supported by the sovereign's prudent macroeconomic policies, a moderate debt burden, and strong and stable political institutions. These factors are balanced by strengthened but still relatively vulnerable
