Fitch affirms South Africa’s long-term foreign and local currency debt ratings at ‘BB-’

The government has taken note of Fitch’s decision to maintain a stable outlook and affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB-‘.

In a statement, National Treasury said that according to Fitch, the affirmation takes into account recent improvements in numerous important credit measures, including the current account balance, as well as the fact that the government’s debt trajectory is lower than previously predicted.

But the agency believes that maintaining debt stabilization will be difficult.

By reducing the budget deficit and significant debt, the government will continue to demonstrate its dedication to fiscal sustainability and promote long-term growth.

“Better than projected revenue collection in the current fiscal year supports South Africa’s strong commitment to restoring the sustainability of state finances.”

The agency, cited Treasury, stated that South Africa’s ratings are backed by a reliable monetary policy framework, as well as a favorable debt structure with extended maturities and primarily in local currency.

While maintaining the long-term foreign and local currency debt ratings at ‘BB-‘ and ‘BB,’ respectively, rating agency Standard &Poor changed South Africa’s credit rating outlook in May from stable to positive.