Global Ratings Agency Fitch affirms South Africa’s “junk” rating, outlook stable just a month after a Downgrade by Moodys and Standard & Poors review.
Ratings agency Fitch affirmed South Africa’s sub-investment grade rating on Thursday with a stable outlook, warning weak economic growth remained a key risk.
Fitch downgraded South Africa to BB+ from BB- on both foreign and local currency debt in early April after a cabinet reshuffle that saw respected finance minister Pravin Gordhan dismissed.
“South Africa’s ratings are weighed down by low trend GDP growth, sizeable contingent liabilities and deteriorating governance,” Fitch said in a statement.
“Positively, they are supported by deep local capital markets, a favourable government debt structure and a track record of fairly prudent fiscal and monetary policy.”
Credit – Reuters