Political stability and transparent institutions. Manageable external debt levels. Well-developed capital markets, strong financial sector, and an independent central bank. Very high unemployment rates, social development needs, and deep inequalities, which put pressure on policy. Volatile capital inflows that finance current account deficits. Increasing funding needs of government-related entities. The ratings on the Republic of South Africa are supported by Standard&Poor's Ratings Services' view of the country's political stability, transparent institutions, and manageable external debt levels. Well-developed capital markets, a strong financial sector, and an independent central bank also support the ratings. The ratings are constrained by South Africa's social development needs and inequalities, which put pressure on policy; its vulnerability to volatile capital inflows that finance its
