South African authorities prioritize hitting budget targets over pleasing credit‑rating firms, said the government’s top finance official. The bond market is already pricing the country’s debt as investment grade, even though rating agencies lag behind.

Africa’s largest economy was downgraded to junk in 2017 after years of institutional erosion, fiscal deterioration, and rampant corruption known as state capture. Since then the government has turned spending overruns into surpluses, and debt ratios are set to decline from the current fiscal year.

Analysts note that the market’s confidence reflects improved fiscal discipline, while rating firms await more sustained evidence before revising their scores. Officials say the focus remains on meeting budget targets rather than chasing upgrades.

The shift illustrates how investor sentiment can outpace formal ratings, giving South Africa a chance to lower borrowing costs if the trend continues.