Fitch affirm SA’s rating at BB-, maintains stable outlook

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Fitch affirm SA’s rating at BB-, maintains stable outlook

Fitch said that the affirmation took into consideration that the government’s debt trajectory was lower than previously anticipated.

Picture: Supplied.
  • SA Economy
  • South Africa
  • Fitch Ratings
  • Fitch

JOHANNESBURG – Despite power problems and high inflation, ratings agency Fitch has affirmed South Africa’s long term foreign and local currency debt ratings at BB-, maintaining a stable outlook.

The agency released its outlook late on Thursday night.

South Africa has joined the rest of the world in seeing high fuel prices and other economic pressures due to the war in Ukraine.

Fitch said that the affirmation took into consideration that the government’s debt trajectory was lower than previously anticipated.

It also noted recent improvements in several key credit metrics, including the current account balance.

However, the agency anticipated debt stabilisation to remain a challenge.

In response, government said that it would continue to demonstrate its commitment to fiscal sustainability and enable long-term growth by narrowing the budget deficit and sizable debt.

It also said that South Africa’s steadfast commitment to restoring the sustainability of public finances was supported by better-than-expected revenue collection in the current fiscal year.

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