TREASURY TRYING HARD

THE TREASURY yesterday noted rating agency Fitch’s decision to keep South Africa’s sub-investment grade credit rating unchanged at sub-investment and maintain its stable outlook. Fitch said South Africa still faced “low growth potential, sizeable government debt and contingent liabilities, and the risk of rising social tensions due to extremely high inequality”. However, it said the ratings were supported by “strong institutions, a favourable government debt structure, deep local capital markets and a healthy banking sector”. The Treasury said that in order to regain a positive rating, the government was working towards enhancing policy certainty and credibility, lowering the debt burden as well as restoring good governance and financial stability at public institutions and stateowned companies. |