Ratings firm Fitch has kept both South Africa’s local and foreign currency credit ratings unchanged, one notch below investment grade, with a stable outlook.
Fitch says the affirmation reflects a number of developments point to a weaker fiscal outlook and consequent faster pace of debt accumulation.
Fitch also says potential fiscal consolidation measures after the African National Congress (ANC) elective conference in December, could mitigate those trends.
Since April, when Fitch downgraded the country to ‘junk status’, the country has seen a recession, borrowing costs have increased, and revenue has under performed.
Government has noted Fitch’s decision not to further downgrade SA deeper into ‘junk status’.
Moody’s and S&P Global Ratings are due to announce their decisions on Friday.
