Top 10 Countries with Best S&P Bond Ratings in Africa 2025 | USAEMALL.com

In Summary

• Most African countries are rated “B-” by S&P, which indicates a high credit risk and “junk bond” status.
• Botswana has the highest S&P rating in Africa, “BBB+.” Only Botswana and Mauritius are considered investment grade with a “BBB” or higher rating.
• Top African economies, such as Nigeria, South Africa and Kenya, all have poor ratings and are regarded as “sub-investment grade” by S&P.
• A low S&P rating can limit a country’s ability to access international capital markets at favourable terms.

Deep Dive!!

Many African countries need to attract Foreign Direct Investment (FDI) and credit facilities from international capital markets to fund budgets for capital projects. To achieve this, credit ratings are important for countries, because it shows how qualified they are to mobilize resources from international capital markets. In return for this credit, countries often issue bonds which serve as security to the investors.

Countries that implement worthy reforms can improve their credit ratings. These ratings provide investors with a quick and standardized way to evaluate the credit risk of a bond issuer. What this means is that higher-rated bonds are generally considered lower risk while lower-rated bonds are viewed as higher risk. Investors and international capital market stakeholders use these ratings to assess the likelihood of the bond issuer meeting its debt obligations.

According to available data, most African countries are rated as “sub-investment grade” by S&P, with the majority receiving a “B-” rating, including key economies like Nigeria, South Africa and Kenya; very few African nations reach investment grade, usually around the “BB-” level. Many African countries experience negative outlooks or downgrades due to economic challenges. A low S&P rating can limit a country’s ability to access international capital markets at favourable terms.

What is S&P, the Agency Standard & Poor’s for Bond Rating?

S&P bond rating, which stands for “Standard & Poor’s” bond rating, is a credit rating assigned by the Standard & Poor’s rating agency that assesses the creditworthiness of a bond issuer, indicating the likelihood that they will be able to repay their debt, with a scale ranging from AAA (highest credit quality) to D (default) with intermediate ratings like “+” or “-” between certain levels; essentially, it’s a way for investors to gauge the risk associated with buying a particular bond based on the issuer’s financial health.

S&P Global Ratings (previously Standard & Poor’s and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is considered the largest of the Big Three credit-rating agencies, which also include Moody’s Ratings and Fitch Ratings.

The rating scale runs from AAA (best) to D (default). The investment grade – ratings considered “investment grade” are typically considered to be BBB and above, signifying a relatively low risk of default. The non-investment grade ratings below BBB are considered speculative and carry a higher risk. Plus, and minus signs are between certain rating levels, S&P may use “+” or “-” to indicate slightly higher or lower creditworthiness within that category.

Here are the top 10 Countries with Best S&P Bond Ratings in Africa

According to current S&P ratings, the top 10 African countries with the best bond ratings are listed below. Note that this list is based on the most recent S&P ratings available, and rankings can change depending on economic conditions and updates to credit ratings.

In conclusion, credit ratings serve as a valuable tool among many that investors can utilize when assessing bonds and other fixed-income investments. By providing independent opinions on creditworthiness through a standardized framework, ratings contribute to the efficiency and stability of capital markets.

Access to capital is essential for fostering economic growth—enabling entrepreneurs to establish and expand businesses, supporting infrastructure development, and facilitating job creation in key industries. As a leading provider of independent credit ratings and analysis, S&P Global Ratings combines a global perspective with local expertise, helping investors make more informed financial decisions.