Fitch Affirms S. Africa Credit Rating At 'BBB+'; Outlook Negative

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Monday, rating agency Fitch affirmed all of South Africa's sovereign ratings and said the outlook on these ratings remains negative.

The country's long-term foreign currency Issuer Default Rating is 'BBB+' and the long-term local currency IDR is 'A', while the short-term foreign currency IDR is 'F2'.

South Africa's ratings have been on negative outlook since November 2008. Fitch has affirmed the Country Ceiling at 'A'.

"South Africa is weathering the global recession and credit crunch quite well compared to its rating peers," said Veronica Kalema, Fitch's Sovereign group director.

The agency forecasts South Africa's GDP to fall 1%-2% this year and said this will be far less than most 'BBB' category sovereigns. Political risk has also eased since President Jacob Zuma came into power in April.

Moreover, the agency said South Africa's ratings could come under further downward pressure if economic recovery is weaker and more protracted than Fitch currently expects. However, if the country navigates the downturn over the next 12 to 18 months without a sharp deterioration of its credit metrics and with macroeconomic stability intact, the outlook would be revised to Stable.

Monday, rating agency Fitch affirmed all of South Africa's sovereign ratings and said the outlook on these ratings remains negative. (Market News Provided by RTTNews)