As one of the big three ratings agencies, Fitch followed in the footsteps of Moody’s and Standard & Poor’s and left its assessment of South Africa the same as its last review.
The agency says in a statement that the BBB- rating reflects “strong policy institutions‚ deep local capital markets and a favourable government debt structure” which are the counterbalance of “low -trend gross domestic product growth‚ significant fiscal and external deficits‚ and high debt levels” the country was currently experiencing.
Since that memorable week in December when South Africa probably set the world record for the quickest turnaround of ministers of finance, the investment world has been a little wary of the stability of the country as an investment risk.
To add to the country’s woes, this week Statistics SA announced that South Africa's economy has shrunk by 1,2%, raising prospect of recession.
However, on the positive side, the possibility of a credit ratings downgrade has lit a fire under government, business and labour to work cohesively to improve the economic outlook for the country.
