At its most recent review of SA last month, S&P affirmed the sub-investment grade 'BB-/B' foreign currency rating and maintained a "positive" outlook.

A "positive" outlook for sub-investment sovereigns is usually settled within a year, said Ravi Bhatia, Director and Lead Analyst at S&P, referring to the timeframe the firm has to decide whether to upgrade the rating or downgrade the outlook.

S&P assigned its positive outlook on Africa's most industrialized economy in November.

A rating upgrade hinges on three things: faster growth, credible fiscal consolidation and an absence of fresh bailouts for State-owned companies, Bhatia said.

"If the momentum continues, you see slightly better growth, steady fiscal consolidation and no extra bailouts, the pressure is for an upgrade," Bhatia told delegates at the agency's annual SA conference in Johannesburg. "But if growth deteriorates again and fiscal is not under control, we could vote back to stable," he said.

Bhatia said external risks were less of a worry for now, "It's growth and the fiscus," he said.

--Reuters--