Fitch affirms SA’s rating

Fitch affirms SA’s rating

Treasury has vowed to intensify its growth-enhancing economic reforms after credit rating agency Fitch kept the country's sub-investment grade rating unchanged.

Fitch Ratings - new
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National Treasury undertook to make the country an attractive investment destination after Fitch’s stall in giving South Africa a rating above sub-investment grade.

It affirmed the country’s long term foreign and local currency debt at BB+ with a stable outlook.

According to Fitch, South Africa has low growth potential, sizable government debt and contingent liabilities and the risk of rising social tensions due to extremely high inequality.

In a statement by the managers of the country’s coffers, focus will now be placed on enhancing policy certainty and credibility.

“This will be achieved by lowering the debt burden as well as restoring good governance and financial stability at public institutions and state owned companies,” it said. 

Moody’s is the only institution that has the country at a notch above sub-investment grade.

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