South Africa has secured its first credit rating upgrade from Fitch Ratings in almost 21 years, with the agency on Friday raising the country’s long-term foreign and local currency issuer default ratings by one notch to BB from BB-, while maintaining a stable outlook.
The upgrade marks a significant turnaround for Africa’s biggest economy after years of downgrades by major credit rating agencies and places South Africa among the few G20 nations to receive a ratings upgrade from Fitch this year.
“The upgrade primarily reflects South Africa’s record of prudent fiscal management and progress on fiscal consolidation, despite weak economic growth and domestic and external shocks,” Fitch said in a report.
The ratings agency noted that stronger fiscal performance and revisions to gross domestic product data have left South Africa’s debt-to-GDP ratio well below the levels anticipated when Fitch downgraded the sovereign to BB- in 2020.
However, Fitch said the
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