The S&P Global logo is seen outside a building in Washington, DC. AFP/Alastair Pike
JOHANNESBURG - Ratings agency S&P Global says South Africa's credit rating could slip further into junk status if it fails to bring about a rebound in economic growth.
The agency said it's particularly worried about the country's fiscal challenges and increasing debt.
It has also flagged rule of law and uncertainty around property rights as concerns.
S&P Global is one of three major ratings agencies that hold the country in sub-investment grade.
A lower grading negatively affects the cost of borrowing and hurts investor sentiment.
S&P Global sovereign ratings director Ravi Bhatia said South Africa still has a number of strengths.
"A very credible central bank. A flexible exchange rate and actively traded currency and deep domestic capital markets, so those are all strengths but this is [a] counterbalance to provide what I mentioned."