Economics
Fitch Warns South African Debt Stabilization Remains a Challenge
- Ratings company expects government debt to continue rising
- Eskom to need some 150 billion rand in further support: Fitch
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Fitch Ratings warned debt stabilization in South Africa will remain a challenge as it maintained its stable outlook on the country’s sub-investment grade credit rating.
The company affirmed South Africa’s long-term foreign-currency rating at BB-, three levels into junk status, in a statement late Thursday. The decision reflected lower than previously anticipated government debt last year and improved metrics such as the current-account balance, partly due to higher prices for commodity exports, it said.