By Peter Apps
LONDON, May 15 (Reuters) - High commodity prices and greater economic stability will sustain sub-Saharan Africa growth and render it relatively immune to a global slowdown, ratings agency Standard & Poor's said on Thursday.
The agency, which rates 13 sub-Saharan African countries ranging from investment-grade Botswana at "A" and South Africa at "BBB+" to a string of others at "B" and "B+" speculative grades, said it expected prices to remain relatively high on Asian demand.
"Even if we see some slight falls in (commodity prices), many of these countries will continue to do very well," S&P Managing Director for South Africa and Sub-Saharan Africa Konrad Reuss told Reuters.
"There are outliers like Zimbabwe but aside from that, almost all countries have benefited, although the highest growth has been registered by oil producers."
The International Monetary Fund (IMF) said last month it expected 6.5 percent growth in Africa in 2008, only a marginal fall from 6.6 percent in 2007 despite a wider global slowdown from the credit crunch and problems in the United States.
Reuss said most countries had been pursuing much improved economic policies but the greatest threat came from rising food prices as well as the cost of fuel in non oil producers powering inflation and potentially political instability.
"Countries are going to have to find ways of dealing with it but I don't see any near-term rating pressures," he said.
Some B-rated countries might have upside potential, he said, declining to name them.
He expects at least a couple of currently unrated countries to acquire ratings in the coming year, prior to possible Eurobond issues, following in the footsteps of Ghana and Gabon last year.
"Zambia continues to mention a possible bond issue as does Tanzania," Reuss said. "At this point neither country has sovereign ratings, although of course we would like the opportunity to work with them."
Kenya, which was downgraded to "B" from "B+" earlier this year after widespread violence following a disputed December election, recently had its outlook raised from "negative" to "stable" after the conclusion of a power-sharing agreement and could finally issue a planned Eurobond.
"From what I understand, they have received bids from investment banks and will soon be making an announcement over who the lead managers will be," he said.
South Africa, the continent's largest economy, looked set for a "challenging year" running into elections in 2009 and with ruling party leader and former vice president Jacob Zuma still facing off against current President Thabo Mbeki, he said.
But overall Reuss believes the country would weather any political storm.
Increased spending on infrastructure in the aftermath of widespread power cuts in the last year, would benefit the economy.
"After some relatively prudent years South Africa is lucky to be in a position where it can more or less afford to (raise infrastructure spending)," he said. (Editing by David Christian-Edwards)
