<\/p>\n
South Africa received its first credit-rating upgrade from Fitch Ratings in almost 21 years on Friday, with the agency raising the country\u2019s long-term foreign and local currency ratings by one notch to BB from BB-, while maintaining a stable outlook.<\/p>\n
The upgrade places SA alongside only one other G20 country to receive a ratings upgrade from Fitch this year and marks a significant turnaround after years of downgrades by major ratings agencies.<\/p>\n
Read:
Investors reward reform as SA\u2019s outlook improves
Expectations grow for SA credit ratings upgrades
Positive move: Moody\u2019s \u2018upgrades\u2019 South Africa\u2019s outlook<\/p>\n
Fitch notes the decision reflects SA\u2019s record of prudent fiscal management and progress in fiscal consolidation despite weak economic growth and domestic and external shocks.<\/p>\n
\nThe agency also pointed to the country\u2019s transition from primary fiscal deficits to consistent and widening primary surpluses, improved revenue collection, disciplined expenditure management and signs that government debt is stabilising.<\/p>\n<\/blockquote>\n
It further highlighted the long average maturity of government debt \u2013 more than 10 years \u2013 and the relatively low share of foreign-currency-denominated debt as supportive factors.<\/p>\n
Ongoing reforms in the energy and logistics sectors were also cited as likely to support economic growth in the coming years.<\/p>\n
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Other positive developments<\/strong><\/p>\n
The latest move adds to a series of positive ratings developments for SA over the past year.<\/p>\n
In November 2025, S&P Global Ratings upgraded SA\u2019s sovereign credit rating by one notch and retained its positive outlook. The agency reiterated its position in a statement last Friday, affirming SA\u2019s BB+ local currency rating and retaining its positive outlook.<\/p>\n
Moody\u2019s, meanwhile, changed its outlook on South Africa\u2019s sovereign credit rating from stable to positive, signalling the potential for an upgrade within the next 12 to 18 months.<\/p>\n
All three major rating agencies now have South Africa on \u2018BB\u2019 or \u2018Ba2\u2019, which is two levels below investment grade.<\/p>\n
SA\u2019s National Treasury welcomed Fitch\u2019s decision, describing it as evidence that fiscal consolidation efforts are gaining traction.<\/p>\n
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\n\u201cImproved sovereign credit ratings help to lower borrowing costs for government, businesses and households and have tangible benefits for ordinary people,\u201d says Treasury director-general Duncan Pieterse.<\/p>\n<\/blockquote>\n
\u201cSA still has some way to go to regain its investment grade credit rating but for the first time in more than a decade we are seeing a clear turnaround in the downward ratings trend.<\/p>\n
\u201cThe turnaround is especially notable because it comes at a time when the global sovereign credit trend is overwhelmingly negative,\u201d he adds.<\/p>\n
Read:
SA posts third straight primary budget surplus
Ratings rebound in sight as bonds rally<\/p>\nTreasury says the country\u2019s fiscal policy remains focused on stabilising and then reducing the debt-to-GDP ratio through growing primary budget surpluses, where revenue exceeds non-interest expenditure.<\/p>\n
According to Pieterse, government intends embedding this approach in a fiscal anchor, with details expected to be announced in the 2026 Medium Term Budget Policy Statement.<\/p>\n<\/p><\/div>\n
#BREAKING #South #Africa #secures #Fitch #rating #upgrade<\/p>\n","protected":false},"excerpt":{"rendered":"
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