Fitch cuts SA credit rating
The ratings agency Fitch said Thursday that it has downgraded South Africa’s sovereign debt by one notch to ‘BBB’ and added that the outlook was stable.
“Economic growth performance and prospects have deteriorated, affecting the public finances and exacerbating social and political tensions,” a Fitch statement said explaining the key reason for its action.
This cut brings Fitch’s rating of South Africa’s sovereign debt in line with Standard & Poor’s, which cut South Africa’s credit rating to ‘BBB’ (or Baa2) in October 2012.
At the time, S&P cited job layoffs, slowed growth and a negative knock-on impact on the financial and socio-economic position of the country as determining factors for the cut.
S&P’s outlook on South Africa was set to negative.
South Africa’s Ratings before Fitch cut (Click to enlarge)
(With Sapa)
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