On May 7, 2003, Standard&Poor's Ratings Services raised its long-term foreign currency ratings on the Republic of South Africa to 'BBB' from 'BBB-', and its local currency ratings to 'A/A-1' from 'A-/A-2'. At the same time, the 'A-3' short-term foreign currency ratings on the Republic were affirmed. The outlook is stable. The ratings on South Africa are supported by: Prudent fiscal policies, underpinned by budgetary and administrative reforms that have improved planning, accountability, and expenditure controls at all levels of government. These have also improved fiscal flexibility, enabling the government to conduct more expansionary policies and allocate increased resources to social expenditure. National government deficits are projected to rise to 2.4% in 2003/2004, but to remain less than
