Ratings agency Standard & Poor’s said on Tuesday rising political tensions in South Africa amid infighting in the ruling African National Congress could derail government efforts to improve policy implementation and that Pretoria had little room to boost spending.

“South Africa’s fiscal space, or the flexibility its government has to increase its spending to boost the economy, is now limited,” S&P said in response to questions raised by investors on South Africa during a webcast.

S&P downgraded South Africa’s local debt by one notch to BBB in December but kept the country’s sovereign credit rating unchanged at BBB-, one level above “junk” status.