Fitch keeps SA's investment grade at junk status

Fitch still expects land reform to be handled in a way that has no significant negative impact on growth or fiscal metrics. 

Fitch still expects land reform to be handled in a way that has no significant negative impact on growth or fiscal metrics. 

AFP

JOHANNESBURG - Ratings agency Fitch has kept South Africa’s investment grade at junk status with a stable outlook.

The agency says the country’s ratings are weighted down by low growth prospects and sizeable government debt.

READ: Fitch raises 'Ramaphoria' doubts

The risk of rising social tensions fuelled by high inequality is also dragging down the score.

Treasury says it'll continue to engage with stakeholders in fast-tracking its growth reform plans.

Following a prolonged contraction of the economy, the ratings agency is expecting a rebound in investment which will see the economy grow by 2.1 percent in 2019.

Source
eNCA