Fitch affirms South Africa credit rating but downgrades outlook from stable to negative

PUBLISHED: Fri, 26 Jul 2019 18:59:36 GMT

JOHANNESBURG (Reuters) – Ratings agency Fitch on Friday affirmed South Africa’s credit rating at ‘BB+’, in sub-investment grade, but downgraded the outlook from stable to negative, citing a widening budget deficit and spending on supporting struggling state firms.

Fitch said it believed significant progress in restructuring the state power firm Eskom would be challenging, and that downward revisions to economic growth forecasts in 2019 raised new questions about South Africa’s growth potential.

Reporting by Alexander Winning; Editing by Kevin Liffey

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.