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.”(Reuters)
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