Treasury welcomes Fitch’s decision to maintain SA’s credit rating unchanged

National Treasury has welcomed rating agency Fitch’s decision to keep South Africa’s credit rating unchanged.

It affirms the country’s long-term foreign and local currency debt ratings at BB minus, and maintains the outlook at stable.

However, it notes that South Africa’s credit rating was constrained by low economic growth, which has been severely hampered by power outages.

Fitch further raises concerns about the high government debt-to-GDP ratio and what it perceives as a modest path to fiscal consolidation.

Supporting the current rating was the country’s favourable debt structure and its current ability to continue
servicing its debt. Rapid moves to transform the energy sector have also been viewed in a positive light.