Fitch Keep SA Rating As Stable
At present Fitch has SA’s Foreign Currency Rating at BBB (which is still a…OK you could invest in this if you wanted to rating). A lot of people have been worried that that rating would drop due to lots of negative economic factors. Recently reports of things like: the economy shrinking by 1.2% , the replacing of Finance ministers x 2, high levels of debt and fiscal deficits have really not been helping SA’s rating at all. At the same time there are a number of positive factors about SA which, it seems, have helped offset a reduction in the rating for now.
The rating announcement comes after Moodys and Standard & Poor’s recently announced they would not be changing their rating. Moodys seems to be the most optimistic about SA foreign currency rating while S&P and Fitch have been giving SA a lower rating awfully close to junk status.
Outlook Still Gloomy
Though this is a temporary positive step most analysts are saying we should expect at least one of the 3 agencies to downgrade their rating to “junk” status by year end should things not turn around significantly. Reviews are typically done in December.