Standard and Poor’s Global Ratings downgraded its outlook on South Africa to stable from positive, citing severe rolling blackouts.
The rating agency says South Africa’s constraints on infrastructure and electricity supply could affect its economic growth.
S&P has kept South Africa’s currency debt rating unchanged at sub-investment grade but has warned that it could be lowered further if the government’s ongoing reforms to address the power crisis do not progress as planned.
The National Treasury says to address concerns raised by S&P it is taking urgent measures to reduce load shedding and transform the sector to achieve energy security.