Government responds to S&P’s outlook downgrade

JOHANNESBURG - Government says it notes S&P Global’s decision to revise South Africa’s credit rating outlook to stable from positive.

In its report, Standard & Poor's cited concerns around South Africa's economic growth which is facing increasing pressure from infrastructure constraints, and severe electricity shortages.

READ: S&P downgrades SA's credit outlook

It also says reforms to improve governance and performance at state-owned entities are slow, while debt at SOEs continues to threaten fiscal and debt positions.

Government announced that it is taking urgent measures to reduce blackouts in the short term and transform the sector through market reforms to achieve long-term energy security.

Other reforms are under way to improve performance in the transport sector, and freight rail in particular.