Since the South African bond market has historically been a predominantly government and government-related debt market, the use of credit ratings has been limited. With the introduction of corporate bonds in recent years, this has changed as a need has emerged for a better understanding of credit risk.
The corporate bond market is today the fastest-growing segment of the bond market, as new issuances of corporate bonds have overtaken those of government bonds. Government has also been borrowing less because of fiscal discipline and more efficient tax collection by the South African Revenue Services.