Fitch Ratings aligns SA's long term local currency rating

Posted On Tuesday, 26 July 2016 10:39 Published by
Rate this item
(0 votes)

Fitch Ratings agency has aligned South Africa’s long-term local currency rating to long term foreign currency rating at BBB with a stable outlook, said National Treasury on Tuesday.

Fitch_Ratings

Treasury said although the action represents an alignment, it also serves as a timely reminder of the risks of a downgrade that lie ahead and the urgency of actions required to reinvigorate the South African economy.

Recently Fitch updated its Sovereign Rating Criteria, which is the methodology it uses to rate all sovereigns. Following the publication of the updated methodology, the agency then held a Sovereign Portfolio Review Committee of all its existing sovereign ratings on 19 July 2016.

The review was aimed at assessing the relationship between existing rating of long-term local and foreign currency debt in line with the guidelines in the updated criteria.

The revised guidelines by the agency reflect their assessment that the credit risk profile of sovereign local and foreign currency debt should be closely aligned.

National Treasury said the country must persist and redouble efforts to improve growth prospects.

“We must persist with, and redouble our efforts to work together with government, business and labour to improve our growth prospects and to create more business and work opportunities,” said Treasury.

The National Development Plan and the Nine-Point Plan already identified some of the reform measures. 

Last modified on Friday, 29 July 2016 06:45

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Darryl_Mayers_CEO
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

Rethinking office space in post pandemic SA

Apr 20, 2021
90_Rivonia_results
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Carl_Coetzee_BetterBond_CEO
Make buying your dream home an informed purchase by knowing your credit score.

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Tomasz_Trzósło
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Western Cape ripe with affordable housing potential

Apr 20, 2021
Tuhf_Hi_res24
The TUHF Western Cape regional team believes that even though COVID has had an impact on…

Please publish modules in offcanvas position.