The rating agency Fitch recently revised the outlook on SA’s long-term foreign currency issuer default rating down from “stable” to “negative”. A credit rating outlook indicates the potential direction of a country’s rating over the intermediate term, typically six months.

Fitch pointed to the expected increase in the government debt-to-GDP ratio. This would make it more difficult to stabilise public debt. SA’s public debt has been increasing due to lower-than-projected tax revenue growth on the back of weak economic growth and the R59bn bailout for the power utility, Eskom...

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