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.
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.