Fitch affirms South Africa’s BB- rating
International ratings agency Fitch has affirmed South Africa's long term foreign and local currency debt ratings at BB-, maintaining a stable outlook.
Fitch says this is due to South Africa's government's debt trajectory, which is lower than previously anticipated.
But the agency warns that debt stabilisation will remain a challenge.
A statement released by Treasury on Thursday, it assured the agency that the country will continue to demonstrate its commitment to fiscal sustainability.
It further states that it will enable long-term growth by narrowing the budget deficit and sizable debt.
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“South Africa’s steadfast commitment to restoring the sustainability of public finances is supported by better-than- expected revenue collection in the current fiscal year,” reads the statement.
“According to the agency, South Africa’s ratings are supported by a favourable debt structure with long maturities and denominated mostly in local currency as well as a credible monetary policy framework.”
