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

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.