Fitch Follow Suit

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Fitch Keep SA Rating As Stable

fitch ratingsRatings Agency Fitch Ratings has followed suit with Moodys and S&P in maintaining  their rating of SA’s Foreign currency rating.

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.


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