Treasury focuses on regaining SA's investment grade status
Fitch Ratings has affirmed South Africa’s long-term foreign and local currency debt ratings at BB+ with a stable outlook.
JOHANNESBURG - National Treasury says it’s main focus is to regain South Africa’s investment grade status to make the country an attractive destination for international companies
The country’s foreign and local currency credit ratings remain below investment grade. S&P Global also has South Africa at sub-investment grade, while Moody’s has the country in positive territory.
Treasury says it notes that Fitch’s ratings are based on low growth potential, sizeable government debt, and contingent liabilities.
Added to this, the agency has noted the risk of rising social tensions due to extremely high inequality. But the rating agency has acknowledged policy interventions that government is pursuing in order to reignite economic growth.
Treasury says this includes among others, the economic stimulus and recovery plan that was announced by the president in September.
Fitch has also acknowledged the approval of the revised Mining Charter, saying this is expected to lower uncertainty in the sector.