Fitch Ratings (Fitch) affirmed South Africa’s long term foreign and local currency debt ratings, outlook remains stable
Fitch has affirmed South Africa’s long term foreign and local currency debt ratings of ‘BB+’ with a stable outlook.
Fitch has cited that despite the country’s credit strengths of deep local capital markets, favourable government debt structure and a track record of fairly prudent fiscal and monetary policy, South Africa’s ratings continue to be weighed down by:
- Low potential economic growth;
- Sizable contingent liabilities; and
- Deteriorating governance of state-owned companies (SOCs).