South Africa staves off further downgrade
South Africa has managed to avoid being downgraded deeper into junk status.
The Fitch Ratings agency has affirmed South Africa's long-term foreign and local currency debt ratings at 'BB+' and maintained a stable outlook.
Government says while Fitch's ratings imply that South Africa is still in line with other emerging markets in the same ratings category, the implications are huge for the country.
"A 'junk status' rating has implications for the economy, state debt costs, state owned companies and the ordinary man on the street.
"Since April 2017, when Fitch downgraded the country to 'junk status', the country has seen a recession, borrowing costs have increased, and revenue has underperformed," Treasury says in a statement.
Treasury says government and the country collectively cannot afford to become complacent about these rising risk exposures.
"By not downgrading the country further, Fitch is providing South Africa with an opportunity to address issues that can lead to an upward revision to the ratings."
