Fitch maintains SA's credit rating, concerned about public sector wage demands
A week ago, ratings agency S&P Global also maintained their credit outlook for the country, but with a positive outlook.
Ratings agency Fitch has maintained SA's credit rating with a stable outlook.
A week ago, ratings agency S&P Global also maintained their credit outlook for the country, but with a positive outlook.
According to Fitch, their decision takes into account the recent over-performance of revenue and government’s efforts to control expenditure which, if continued successfully, could bring about debt stabilisation.
However, the agency assumes a substantial part of recent higher revenues to be temporary.
In addition, it sees current public sector wage demands pointing to increased upward pressure on spending.
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In a statement responding to the decision, Treasury said government’s fiscal strategy reduces risks to the economy and public finances over the medium term.
"The higher-than-anticipated revenues will be used to reduce the gross borrowing requirement, support spending priorities and reduce risks to the fiscal outlook," they say.
