Sasol

• On 28 October 2022, S&P upgraded Sasol’s rating from BB to BB+ on the back of debt reduction, and improved cash flow generation supported by stronger commodity prices and improved efficiency; revising the outlook from positive to stable. The stable outlook reflects that recent debt reduction and supportive oil prices will offset near-term headwinds and allow Sasol to maintain FFO to debt above 45% on average in the coming years.
• On 28 November 2023, Moody’s upgraded Sasol’s rating to Ba1 from Ba2 and changed the outlook to stable from positive. Moody’s cited that the change in ratings reflects the company’s sustained improvement in credit metrics and reduction in debt levels as a result of sustained higher oil prices, asset disposal proceeds and a resilient business performance.  The stable outlook reflects Moody’s expectation that the company’s credit metrics will remain stable over the next 12-18 months. 

South Africa

• In November 2023, S&P affirmed South Africa's BB-, stable credit rating. S&P cited that rising private sector electricity generation will likely ease South Africa’s energy shortages from 2025, but ongoing logistics bottlenecks could continue to constrain medium-term growth prospects.  They also noted given revenue underperformance and higher-than-planned expenditure, they expect the pace of debt accumulation to be faster than previously forecasted, however recognising that South Africa benefits from access to deep domestic markets and concessional funding, and an actively traded currency.
• In April 2022, Moody’s affirmed South Africa’s Ba2 rating but changed its outlook to stable from negative. Moody’s cited that the key driver behind the decision to change the outlook to stable is the improved fiscal outlook that raises the likelihood of the government’s debt burden stabilising over the medium term.