Fitch revises South Africa's outlook to 'stable' on economic recovery
Reuters
Published Dec 15, 2021 04:07PM ET
(Reuters) - Fitch on Wednesday upgraded the outlook on South Africa's long-term foreign-currency issuer default rating to "stable" from "negative", citing a faster-than-expected economic recovery.
"A recovery is underway and GDP now seems on track to return to pre-pandemic levels during 2022" Fitch said.
The rating agency affirmed the country's sovereign debt rating at 'BB-', constrained by high and rising government debt, low trend growth, and high inequality.
Fitch said the revision reflected South Africa's "surprisingly" strong fiscal performance this year and significant improvements to key GDP-based credit metrics following the re-basing of national accounts.
The pandemic continues to weigh on the economic performance of South Africa, the country worst affected by the pandemic on the African continent in terms of confirmed infections and deaths, Fitch said, adding that the likelihood of severe negative effects on creditworthiness has declined over the last year.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.