LONDON (Standard&Poor's CreditWire) April 27, 1999--Standard&Poor's today assigned its double-'B'-plus foreign currency rating to the Republic of South Africa's debut euro-denominated bond, a seven-year euro 500 million bond. At the same time, Standard&Poor's affirmed its issuer credit and senior unsecured ratings on the Republic (see list below). South Africa's ratings are constrained by: -- Lackluster growth prospects and high unemployment. Weak global demand for South Africa's key commodity exports and poor domestic demand are expected to result in real GDP growth of no more than 0.5% in 1999, followed eventually by an acceleration to 2%-3% in 2000. Factors limiting medium-term growth prospects include a rigid labor market that hinders job creation, and inadequate rates
