In our view, the incumbent government under president Jacob Zuma will ensure broad policy continuity, and the ANC will win the 2014 general elections. Gradual fiscal consolidation remains on track but may become exposed to pressures from public-sector wages, development needs, and lower-than-projected economic growth. Structural and rising current account deficits heighten South Africa's dependence on external financing. We are therefore affirming our long- and short-term foreign currency sovereign credit ratings on South Africa at 'BBB/A-2'. The outlook remains negative, reflecting our view that recent lackluster economic performance, increasing external imbalances, and potentially resurging labor tensions could affect South Africa's macroeconomic policy framework beyond our current expectations. On March 13, 2013, Standard&Poor's Ratings Services affirmed its long- and
