CAPE TOWN, May 23 (Xinhua) -- The South African government continues to engage intensively with all the rating agencies to avoid further downgrade, Finance Minister Malusi Gigaba said on Tuesday.

The engagement is aimed at taking the rating agencies to have confidence in South Africa's ongoing reforms, growth initiatives, and the commitment to measured fiscal consolidation and improving the governance and sustainability of state-owned companies, Gigaba said in his Budge Vote Speech in Parliament.

"We hope these engagements will avert further downgrades in the short term, and that progress in these areas will improve our credit ratings in the medium term," he said.

For South Africa to be able to borrow and refinance debt, credit rating agencies are critical as they rate public debt, and therefore their independent assessment of South Africa's creditworthiness and economic prospects are influential with investors, the minister said.

He said the recent downgrades in South Africa's credit rating by two rating agencies have left the country's foreign currency denominated and domestic currency debt rating at sub-investment grade.

In April, Standard & Poor's (S&P) and Fitch downgraded South Africa's sovereign rating to junk status after President Jacob Zuma reshuffled the cabinet, sacking well-respected Finance Minister Pravin Gordhan and nine other ministers, a move that plunged the market into chaos.

S&P is due to make another ratings announcement on the nation in early June 2017, while Moody's has placed the country under review for a downgrade.

On Monday, South African cabinet ministers met S&P representatives following discussions with Moody's last week.

There is no magic bullet to improving South Africa's credit rating and "we must implement the NDP (National Development Program) and the nine-point plan (a blueprint for economic development)", Gigaba said.

"Progress in our economic development programmes will result in improved credit ratings, business and investor confidence," he added.

South Africa will manage the fiscus prudently and sustainably, giving domestic and international investors confidence in its macroeconomic stability, the minister said.

The government will also monitor the debt levels of state-owned companies closely to ensure they do not pose undue risk to themselves, or the country, he said.