We consider that South Africa's near-term political pressures have eased and that the Treasury remains committed to further gradual fiscal consolidation. However, fundamental structural economic and social problems continue, such as very high unemployment and a structural current account deficit that makes the economy dependent on external financing. We are revising our outlook on South Africa to negative from stable, and affirming our foreign and local currency ratings at 'BBB+/A-2' and 'A/A-1'. We are affirming the national scale ratings at 'zaAAA/zaA-1'. The negative outlook reflects the potential for a downgrade if economic and social problems feed into the political debate in the run-up to the 2014 elections and consequently further put pressure on the policy framework. On March 28, 2012,
