Fitch Ratings has downgraded South Africa's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to "BB+" from "BBB-". The outlooks are Stable. The issue ratings on South Africa's senior unsecured foreign- and local-currency bonds have been downgraded to 'BB+' from 'BBB-'. The rating on the sukuk trust certificates issued by RSA Sukuk No. 1 Trust has also been downgraded to 'BB+' from 'BBB-', in line with South Africa's Long-Term Foreign-Currency IDR. The Short-Term Foreign-and Local-Currency IDRs and the rating on the short-term local-currency securities have been downgraded to 'B' from 'F3'. The Country Ceiling has been revised down to 'BBB-' from 'BBB'. Key rating drivers The downgrade of South Africa's Long-Term IDRs reflects Fitch's view that recent political events, including a major cabinet reshuffle, will weaken standards of governance and public finances. In Fitch's view, the cabinet reshuffle, which involved the replacement of the finance minister, Pravin Go...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.