File: The Fitch Ratings logo. Nikolas Kokovlis/ NurPhoto via AFP
JOHANNESBURG - South Africa has received another vote of confidence from ratings agency Fitch.
It's upgraded the country’s long-term foreign and local currency credit ratings from ‘BB-' to 'BB', with a stable outlook.
It’s the first upgrade from the ratings agency in nearly 21 years.
Fitch says the move reflects prudent fiscal management and progress on debt consolidation.
This is despite South Africa continuing to face weak economic growth and external shocks.
The agency also points to a turning point in the public finances.
It notes that the country’s debt-to-GDP ratio is now lower than previously expected, supported by stronger revenue collection and tighter spending control.