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(Reuters) – Fiche on Wednesday upgraded South Africa’s long-term foreign currency issuer’s default rating forecast from “stable” to “negative”, citing a faster-than-expected economic recovery.
“The recovery is underway and GDP appears to be on track to return to pre-pandemic levels by 2022,” Fitch said.
The rating agency affirmed the country’s sovereign debt rating in ‘BB’, limited by the government’s high and rising debt, low trend growth and large disparities.
Fitch said the review reflected South Africa’s strong “stunning” tax performance this year and significant improvements in major GDP-based credit measures after the national accounts were refocused.
The pandemic continues to weigh heavily on South Africa’s economic performance in the worst-hit country in the African continent in terms of confirmed infections and deaths, Fitch said, and the likelihood of a serious negative impact on credit quality has declined recently. in.
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