Rating agency sends warning to South Africa after budget

Credit rating agency Fitch Ratings has warned that South Africa is not doing enough to contain its rising debt, despite better than expected revenue windfalls.

In a research note published after the national budget on Wednesday (23 February), Fitch said that South Africa continues to breach its expenditure ceilings – pointing to difficulties in containing spending. There is also a risk that recent strong revenue growth may prove temporary, it said.

The country’s improved fiscal performance had already contributed to Fitch’s decision to revise the outlook on South Africa’s BB- credit rating to ‘stable’ from ‘negative’ in December 2021.The budget on […]

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