Fitch affirms SA’s BB+ rating with stable outlook
But it warns that SA’s ratings are weighed down by low growth potential, large government debt and contingent liabilities, and the risk of rising social tension
Fitch Ratings has followed suit with S&P Global Ratings by affirming SA’s rating with a stable outlook. In a statement on Thursday evening, the ratings agency affirmed SA's long-term foreign-currency issuer default rating (IDR) at BB+. It warned, however, that the country’s ratings were weighed down by low growth potential, sizeable government debt and contingent liabilities, and the risk of rising social tension due to extremely high inequality. Despite this, SA still has strong institutions, a favourable government debt structure, deep local capital markets and a healthy banking sector. Fitch is one of two agencies that rate the country’s creditworthiness at subinvestment grade following a surprise cabinet reshuffle when then president Jacob Zuma fired finance minister Pravin Gordhan, in March 2017. While the ratings agency acknowledged that progress had been made in terms of President Cyril Ramaphosa's stimulus package, the revised mining charter and the reprioritisation of spend...
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.