Fitch affirms SA rating, outlook

The Treasury has done enough to ensure South Africa’s local currency is not downgraded by Fitch Ratings‚ through its commitment to the existing fiscal policy.

Fitch said in a statement yesterday: “SA’s ratings are weighed down by low-trend GDP growth‚ sizeable contingent liabilities and deteriorating governance.

“Positively‚ they are supported by deep‚ local capital markets‚ a favourable government debt structure and a track record of fairly prudent fiscal and monetary policy.”

It cautioned that the cabinet reshuffle at the end of March‚ which triggered a downgrade‚ was likely to undermine governance of stateowned enterprises‚ weaken fiscal consolidation and reduce privatesector investment.

The Treasury said: “Government notes the decision … and expresses gratitude to all the stakeholders who participated in meetings with the ratings agency.”

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