South Africa Sees Breakthrough as Ramaphosa Reforms Win S&P Nod
- Yields on 10-year bonds drop to six-week low on outlook shift
- Outlook change shows faith in economic reforms StanChart says
Cyril Ramaphosa
Photographer: Dwayne Senior/BloombergThis article is for subscribers only.
A turnaround that investors have bet on in South Africa since President Cyril Ramaphosa returned to power on a mandate for reforms is coming true — at least in the nation’s credit outlook.
The rand and South African bonds rallied on Monday after S&P Global Ratings raised its view of the nation to positive from stable — for only the second time in the president’s six-year tenure. The move indicated the ratings company’s next move may well be an upgrade of the credit grade.