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Credit Rating

  Sasol South Africa
MOODY'S Ba2, under review Ba1, negative
S&P GLOBAL RATINGS  BB, negative BB-, stable


Credit rating agencies, S&P Global and Moody’s have recently updated their credit rating assessments of Sasol in light of the impact of the COVID-19 pandemic on global growth and oil price volatility.

  • On 7 March 2020, S&P Global affirmed Sasol’s BBB- rating, with a negative outlook. Shortly thereafter, Sasol’s rating was revised to BB on 30 March 2020, with the negative outlook unchanged. This was in response to significantly lower oil and chemical prices combined with falling demand and global disruptions linked to the Covid-19 pandemic.
  • On 5 March 2020, Moody’s revised Sasol’s credit rating from Baa3, negative to Ba1 stable. On 31 March 2020, on the back of oil price volatility and the impact of the Covid-19 pandemic on the global economy, Moody’s revised Sasol’s rating again from Ba1 to Ba2 and placed the company under review for a downgrade. Moody’s stated that with regard to Covid-19 “South Africa’s lockdown to contain the outbreak creates further uncertainty on near-term financial performance, while an extended lockdown beyond the original timeline could further affect performance”.

South Africa

  • On 27 March 2020, Moody’s downgraded South Africa from Baa3 to Ba1, maintaining a negative outlook. Moody’s cited that the continuing deterioration in fiscal strength and the structurally weak growth are key drivers for the downgrade and is of the opinion that current policy settings will be unable to address these factors effectively. 
  • On 29 April 2020, S&P Global revised South Africa’s credit rating from 'BB' to 'BB-' with a stable outlook, due to the impacts of COVID-19 on the fiscus and expected impairment of any growth prospects. Contingent liabilities from state-owned enterprises were highlighted as a significant additional risk to the public balance sheet, while a credible and consistent central bank and actively traded currency contributed to the stable outlook provided.