Fitch keeps SA at junk, outlook stable

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United States, New York : Fitch Ratings, one of the leading credit rating agencies situated in New York, USA.

United States, New York : Fitch Ratings, one of the leading credit rating agencies situated in New York, USA.

JOHANNESBURG – South Africa’s long-term credit rating remains ‘BB+&39;, otherwise known as junk status, with a stable outlook, ratings agency Fitch confirmed on Thursday.

The agency outlined low growth and sizeable government debt as the main downside risk to the rating.

READ: Mini-budget disappoints Fitch

Fitch said on the upside, South Africa’s weaknesses were balanced by favourable government debt structures, deep local capital markets and a flexible exchange rate.

The statement largely touched on Finance Minister Malusi Gigaba’s mid-term budget, a big event since the last round of reviews.

National Treasury welcomed the decision, saying it provided South Africa with an opportunity to address issues that could lead to a ratings improvement.

Agencies S&P and Moodys will announce their decisions on Friday.

It’s expected that Moodys will join other agencies who have already downgraded South Africa to junk.