Fitch affirms SA's 'junk' rating, outlook stable


Fitch ratings agency on Friday revised the outlook on South Africa to negative from stable. The ratings agency said the outlook revision was partly due a strike at platinum mines.

JOHANNESBURG - Ratings agency Fitch affirmed South Africa's sub-investment grade rating on Thursday with a stable outlook, warning weak economic growth remained a key risk.

Fitch downgraded South Africa to BB+ from BB- on both foreign and local currency debt in early April after a cabinet reshuffle that saw respected finance minister Pravin Gordhan dismissed.

"South Africa's ratings are weighed down by low trend GDP growth, sizeable contingent liabilities and deteriorating governance," Fitch said in a statement.

"Positively, they are supported by deep local capital markets, a favourable government debt structure and a track record of fairly prudent fiscal and monetary policy."

Fitch Affirms SA's Ratings at 'BB+' with Stable Outlook by on Scribd