Fitch ratings
Mboweni: Fitch & Moody's credit rating downgrades painful
Reacting to the news, Finance Minister Tito Mboweni said that there was an urgent need for government and its social partners to implement structural reforms to...
Ratings agency Fitch said the country had a poor track record of delivering debt and spending cuts.
Land Bank is one of several state-owned firms that are facing financial difficulties and piling pressure on President Cyril Ramaphosa’s cash-strapped government as it scrambles to revive a recession hit-economy.
On Thursday Fitch downgraded the country's credit rating to BB with a negative outlook, while Moody's dropped it to junk status last week.
Fitch has downgraded South Africa's credit rating to BB from BB+, while also assigning a negative outlook.
This comes after Moody's put the country in junks status a week ago.
The ratings agency said that the country's ratings were constrained by low growth potential, high and rising government debt, large contingent liabilities as well as the risk of rising social tensions due to extremely high inequality.
The Finance Minister said that his mid-term budget review – which painted a bleak picture of the country’s finances – had not gone down well with international ratings agency Fitch.
The agency said in a statement it had lowered Saudi Arabia's long-term foreign-currency issuer rating from A+ to A, with a stable outlook.
Hong Kong’s rating outlook is negative, Fitch Ratings said on Friday.
At 1600 GMT, the rand was 1.24% weaker at 14.2650 per dollar, bringing its weekly losses to more than 3%.
The agency also said the apparent victory of the African National Congress was consistent with the view that a major economic policy shift was unlikely.
Fitch Ratings has affirmed South Africa’s long-term foreign and local currency debt ratings at BB+ with a stable outlook.
It’s the third major agency to keep its rating unchanged with Fitch and S&P Global keeping South Africa at sub-investment grade.
The banks all have the same rating as Fitch says this reflects the overall outlook for the country.
The agency has given its verdict on the budget speech, presented by the minister on Wednesday.
The agency has given its verdict on the mid-term budget speech presented by Finance Minister Tito Mboweni on Wednesday.
Fitch says South Africa’s rating is weighed down by a low growth trend, sizeable government debt and contingent liabilities.
Treasury says it believes changes in political leadership have led to a significant improvement in economic confidence and government is prioritising inclusive growth.