Fitch Ratings has maintained South Africa's credit rating at 'BB-' with a stable outlook, while expressing concerns about weak growth prospects and increasing government debt. The agency predicts that load shedding will ease in 2024, but expects government debt to reach 83.2% of GDP this year. ANC's potential loss of majority in the 2024 general election is unlikely to result in significant changes in economic policy, according to Fitch.
While the country could see less load shedding this year, Fitch is concerned about the country's weak growth prospects and ballooning government debt . Fitch expect government debt will reach 83.2% of GDP this year, which is well above the median of BB-graded countries (52%). ANC could lose its majority in the May 2024 general election , but this is unlikely to result in major changes in economic policy , the agency said.
The international credit rating agency Fitch Ratings has kept South Africa's credit rating unchanged, predicting that load shedding will ease in 2024 – but took a grim view on the country's growth prospects and ballooning government debt. Fitch's rating remains at 'BB-' with a stable outlook, which is in line with S&P's rating (also BB-). Moody’s rates South Africa slightly higher: at Ba2, which is equivalent to the BB rating Fitch and S&P use. In its ratings report, released on Friday, Fitch projected that the local economy would grow by 0.9% in 2024 and 1.3% in 2025, from an estimated 0.5% in 202
Fitch South Africa Credit Rating Load Shedding Government Debt Growth Prospects ANC General Election Economic Policy
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