Lackluster demand from its major export markets is hurting the South African economy [Xinhua]Ratings agency Fitch affirmed South Africa’s investment grade credit rating on Wednesday and maintained its stable outlook.
“The ‘BBB-‘ rating reflects low trend GDP growth, significant fiscal and external deficits, and high debt levels, which are balanced by strong policy institutions, deep local capital markets and a favourable government debt structure,” Fitch said in a statement.
South Africa’s President Jacob Zuma and Finance Minister Pravin Gordhan held a stock-taking meet on Tuesday.
Apart from Fitch, the other two ratings agencies in the Big3, S&P Global Ratings and Moody’s, have also refrained from awarding a downgrade to the African nation.
Output in Africa’s most-industrialized economy is weighed down by low commodity prices, lackluster demand from its major export markets and the worst drought in more than a century.
South Africa’s gross domestic product declined an annualized 1.2 per cent in the first quarter, the statistics office said in a report released on Wednesday.
Source: Agencies
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