Japanese ratings agency Rating and Investment Information (R&I) has affirmed South Africa's foreign currency issuer rating and domestic currency issuer rating at A- and A respectively, while upgrading the ratings outlook for both from negative to stable.

Although South Africa's real GDP growth rate in 2009 was negative due to the global economic crisis, R&I believes the country's economic growth trend is unaltered, with capital inflows to remain steady even as the global financial environment undergoes adjustments.

"Macroeconomic management continuity has been maintained even through changes of political leadership, and if the economic scenario based on the recovery trend does not go greatly awry, R&I believes the government can sufficiently achieve its projected fiscal deficit reduction plan," the agency said in a statement this week.

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