Fitch reviews SA economic outlook to ‘stable’
Fitch Ratings on Wednesday affirmed South Africa's long term foreign and local currency debt ratings at BB- and revised the outlook to stable from negative.
According to Fitch, the revision of the outlook to stable reflects the faster than expected economic recovery, the surprisingly strong fiscal performance this year and significant improvements in key fiscal indicators following the rebasing of national accounts.
"The agency has warned that the Covid-19 pandemic continues to weigh on economic performance and remains a source of downside risk for public finances,” says Treasury spokesperson Ntsakisi Ramunasi.
"However, the likelihood of severe negative effects on creditworthiness has declined over the last year.
"This despite the recent emergence of the omicron variant of Covid-19 and the associated rapid surge in new cases in South Africa.
"Government will continue to demonstrate its commitment to fiscal sustainability and enable long-term growth by narrowing the budget deficit and sizable debt.
"Equally important is the faster implementation of structural reforms to unlock greater private sector investment, economic growth and job creation."
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