Junk for South Africa as Fitch Joins S&P in Cut on Politics
- Both local and foreign-currency ratings reduced to junk
- BNP sees above-junk local rating from Moody’s, S&P for year
South Africa Ratings Cut to Junk by Fitch
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South African debt got dealt a second blow in a week as Fitch Ratings Ltd. joined S&P Global Ratings and cut the nation’s credit assessment to junk following President Jacob Zuma’s move to fire a well-respected finance minister.
Fitch reduced the foreign-currency rating to BB+, the highest non-investment grade and on par with Turkey and Portugal, four days after S&P reduced its assessment. The local-currency rating was also lowered one level to junk, the company said in a statement on Friday. It raised the outlook to stable, which means Fitch is unlikely to cut again in the next year. This pared the decline in rand and bond yields.