The government has noted Fitch\u2019s decision to affirm South Africa\u2019s long-term foreign and local currency debt ratings at \u2018BB-\u2019 and maintain a stable outlook.<\/p>\n\n\n\n
According to Fitch, South Africa\u2019s credit rating is constrained by low real gross domestic product (GDP) growth hampered by power shortages, a high level of inequality, a high government debt-to-GDP ratio, and a modest path of fiscal consolidation.<\/p>\n\n\n\n
National Treasury said the ratings are supported by a favourable debt structure with long maturities and denominated mostly in local currency as well as a credible monetary policy framework.<\/p>\n\n\n\n
\u201cGovernment is implementing urgent measures to reduce load-shedding in the short term and transform the sector through market reforms to achieve long-term energy security.<\/p>\n\n\n\n
\u201cOver the medium\u2010term, the fiscal strategy aims to achieve fiscal sustainability by reducing the budget deficit and stabilising the debt-to-GDP ratio.<\/p>\n\n\n\n
\u201cOn\u2010budget allocations for infrastructure and other policy priorities and maintaining a sustainable fiscal stance will support economic growth,\u201d National Treasury said on Monday<\/p>\n\n\n\n