Fitch af­firms SA’s BB+ rat­ing with sta­ble out­look

Business Day - - Front Page - /Su­nita Menon

Fitch Rat­ings has fol­lowed suit with S&P Global Rat­ings by af­firm­ing SA’s rat­ing with a sta­ble out­look. In a state­ment on Thurs­day evening, the rat­ings agency af­firmed SA's long-term for­eign-cur­rency is­suer de­fault rat­ing at BB+. It warned, how­ever, that the coun­try’s rat­ings were weighed down by low growth po­ten­tial, size­able gov­ern­ment debt and con­tin­gent li­a­bil­i­ties, and the risk of ris­ing so­cial ten­sion due to ex­tremely high in­equal­ity. Fitch is one of two agen­cies that rate

SA’s cred­it­wor­thi­ness at subin­vest­ment grade fol­low­ing a sur­prise cab­i­net reshuf­fle when then pres­i­dent Ja­cob Zuma fired fi­nance min­is­ter Pravin Gord­han in March 2017.

Ja­cob Zuma

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