File: Fitch says government's expectation that debt will peak at 87.4 percent of GDP in 2024 is “optimistic”.
JOHANNESBURG - Credit ratings agency Fitch has downgraded South Africa to BB from BB+.
It said South Africa's outlook is negative.
It says the country's GDP is forecast to contract by 3.8 percent this year, and Fitch expects only a moderate recovery next year.
Fitch already downgraded South Africa to junk status in 2017.
On Wednesday, Fitch downgraded five of South Africa’s banks to BB negative outlook.
Absa, FirstRand Bank Limited, Investec, Nedbank and Standard Bank are all affected.
This is mainly due to the impact the COVID-19 pandemic has on operating environment and key financial metrics.