In turn, Fitch confirmed the rating of investment in South Africa – Young Africa

 After Moody’s and Standard & amp; Poor’s, the New York rating agency Fitch has confirmed the sovereign rating of South Africa to “BBB-”, the last step in the category of so-called investment rating. The Pretoria government has stepped up efforts in recent months to reassure agencies.

South Africa avoids, for this round , degradation of its sovereign rating. The US rating agency Fitch Ratings affirmed this Wednesday, June 8th the long term rating of South Africa to ‘BBB-’ foreign currency and ‘BBB’ for local currency, with a stable outlook.

the note of the more industrialized economy of the continent remains in the investment category called, considered less risky and allowing South Africa and to companies or local authorities of the country to finance itself at reasonable market rates.

a downgrade of the country under the category “investment” would have forced several funds and investment companies, because of their portfolio management strategy, to give South African titles, which would have weakened the country’s financial sector.

Fitch is the last of the three major international rating agencies confirmed the investment rating of South Africa, after Moody’s (Baa2) and Standard & amp; Poor’s (BBB-), but who, themselves, coupled with negative outlook.

‘rating’ BBB- ‘reflects a weak trend GDP growth, significant fiscal and external deficits and levels high debt, which are matched by strong political institutions, deep local capital markets and a favorable debt structure, “explains the rating agency’s report.

Fitch expects a growth of 0.7% of south Africa’s GDP in 2016, against 1.2% in 2017, and rebound to 1.5% in 2017. Over five years, the average growth of the south African economy 2.2%, against 3.3% in the countries rated in the “BBB” category, said the rating agency.

to meet the concerns of rating agencies and financial markets, south African government introduced last February an austerity budget, including in spending cuts, the job freeze in the public service and of moderate tax increases on property sales, fuel, alcohol and . capital gains

the next review of the rating of South Africa is expected in December

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