Government has noted Fitch’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB-‘ and maintain a stable outlook.
In a statement, National Treasury said according to Fitch, the affirmation takes into consideration that government’s debt trajectory is lower than previously anticipated, as well as recent improvements in several key credit metrics, including the current account balance.
“However, the agency anticipates debt stabilisation to remain a challenge. Government will continue to demonstrate its commitment to fiscal sustainability and enable long-term growth by narrowing the budget deficit and sizable debt.
“South Africa’s steadfast commitment to restoring the sustainability of public finances is supported by better than expected revenue collection in the current fiscal year.”
According to the agency, said Treasury, South Africa’s ratings are supported by a favourable debt structure with long maturities and denominated mostly in local currency as well as a credible monetary policy framework.
In May, rating agency Standard &Poor revised South Africa’s credit rating outlook to positive from stable, while affirming the long-term foreign, and local currency debt ratings at ‘BB-‘ and ‘BB’, respectively.
Moody’s in April upgraded the country’s credit rating outlook from negative to stable.