Off the wire
• ECB foreign exchange rates of Euro to other currencies  • UN chief names head of military observer group in India, Pakistan  • Hamburg' s custodian Jaroslav Drobny joins rivals Bremen  • Germany's benchmark DAX index closes down  • Canada's Ontario unveils billion-dollar climate change action plan  • Gold futures settle higher as rate increase expectation descends  • Oil prices extend gains as U.S. stockpiles fall  • S. Sudan's forest cover shrinks by 1.5 pct annually: UNEP official  • 1st LD: At least five wounded in shooting attacks in coastal Israeli city  • UN scales up humanitarian aid to people fleeing from Iraqi city of Fallujah  
You are here: 　 Home

Fitch's decision affords S. Africa narrow window for reforms: Treasury

Xinhua, June 9, 2016 Adjust font size:

International rating agency Fitch's decision to keep South Africa's outlook stable affords the country "a narrow window to demonstrate further concrete implementation of reforms," the National Treasury said on Wednesday.

These reforms are already underway aimed at turning around the growth path and placing public finances on a more sustainable path, the Treasury said.

Fitch affirmed South Africa's long-term foreign and local currency debt at BBB- and BBB respectively, following the downgrade announced in December 2015. The foreign currency bond rating remains one notch above sub-investment grade whereas the domestic currency bond rating remains two notches above sub-investment grade.

The South African government notes and welcomes Fitch Ratings' decision, said the Treasury.

"Once again, this rating outcome demonstrates that during difficult times, South Africa -- government, labour, business and civil society -- can work together to achieve a common goal," it said.

Referring to a couple of risks highlighted by Fitch, the Treasury said the government is mindful of these and fully aware that the next several months are critical.

"We are stepping up the implementation of the 9-point plan and other measures to boost the economy. We are redoubling our efforts aimed at restoring confidence and boosting investment amongst local and international investors; unblocking obstacles to faster employment growth in key sectors; and undertaking fiscal, State-Owned Company (SOC) and regulatory reforms," the Treasury said.

Fitch's decision is testament to the fact that despite the structural constraints, South Africa remains an attractive investment destination relative to its peers, said the Treasury.

"South Africa continues to play an important role in supporting development in the African continent. These are some of the factors that have enabled the South African economy to demonstrate much greater resilience in the face of exceptionally difficult global and domestic economic conditions," it said. Enditem