The Mercury - - BUSINESS REPORT - Philippa Larkin

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. |

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