Government has noted Fitch rating agency’s decision to affirm South Africa’s long term foreign and local currency debt ratings to sub-investment grade, while maintaining a stable outlook.
In its latest rating publication, the agency says that the country’s affirmation is on the basis that government’s debt trajectory is lower than previously anticipated.
It has further acknowledged the recent improvements in export revenue.
Related video, Fitch Ratings Agency revises South Africa’s credit rating to a BB-, a stable outlook:
However, the agency anticipates that debt stabilisation will remain a challenge.
In a statement, National Treasury said it would continue to demonstrate its commitment to fiscal sustainability and enable long-term growth by narrowing the budget deficit and sizable debt. Government notes that its commitment to restoring the sustainability of public finances is supported by better-than- expected revenue collection in the current financial year.
According to Fitch, South Africa’s ratings are supported by a favourable debt structure with long maturities as well as a credible monetary policy framework.
