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3 minute read
24 May 2021
8:15 am

Junk rating stable in SA – for now

Moneyweb

S&P has maintained a 'stable' view, while Fitch maintained its outlook as 'negative. Slow vaccine rollouts are also a concern.

Elderly South Africans queue at the Munsieville Centre for the Aged, 17 May 2021, ahead of receiving the Covid-19 vaccine in phase 2 of the vaccine campaign. Picture: Michel Bega

S &P Global and Fitch Ratings affirmed South Africa’s long-term sovereign credit rating on Friday at BB-, which is three notches below investment grade. While expected, the confirmation will come as a relief for National Treasury, which is trying to make headway in getting the country out of “junk” status. This, however, is expected to take years. In terms of outlook, S&P has maintained a “stable” view, while Fitch maintained its outlook as “negative”. S&P had a slightly more optimistic tone, highlighting the country’s better current economic performance. However, it warned about the slow pace of Covid-19 vaccinations as a...