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.”