Fitch Ratings affirms SA's rating at BB+

Fitch Ratings affirms SA's rating at BB+
Published: 15 June 2018
Fitch Ratings has affirmed SA's credit rating of junk status, warning of low growth and 'sizeable government debt'.

Fitch kept SA's rating at BB+ with a stable outlook, as expected, after a host of meetings with public- and private-sector role players in recent weeks.

The rating agency also highlighted that SA had the "highest inequality in the world".

"The affirmation and stable outlook takes into consideration signs of recovering governance standards and the prospect of a mild cyclical recovery but also indications that financial challenges at key state-owned enterprises (SOEs) remain substantial and the fact that government debt has yet to stabilise," it said.

Last month, SA received a reprieve from S&P Global Ratings, which left the country's credit rating unchanged, in line with market expectations, affirming its long-term foreign and local currency sovereign credit ratings at BB and BB+ respectively, with a stable outlook.
- BusinessDay
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