Fitch keeps SA at sub-investment grade with a stable outlook
Despite its many problems, Fitch says ‘potential fiscal consolidation measures after the ANC’s elective conference in December’ could work in the country’s favour
Fitch has re-affirmed SA’s status at sub-investment grade with a stable outlook. In a crunch week for the three major credit ratings agencies, Fitch’s outlook comes a day before S&P Global Ratings and Moody’s are scheduled to make announcements. Fitch is the only of the three ratings agencies that already has SA local and foreign debt in junk territory. In a statement on Thursday, Fitch said: “SA’s ratings are weighed down by low trend growth, sizeable government debt, and contingent liabilities and deteriorating governance standards.” Despite this, it added: “These weaknesses are balanced by a favourable government debt structure, deep local capital markets, and a flexible exchange rate that helps absorb external shocks.” This affirms that while SA has a weaker fiscal outlook and consequent faster pace of debt accumulation, potential fiscal consolidation measures after the ANC’s elective conference in December could work in SA’s favour, while GDP growth is also expected to recover ...
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.