Share

Rand up as SA local-currency debt rating downgraded by Fitch

Cape Town - Fitch Ratings downgraded South Africa’s local-currency debt rating one level to bring it into line with the nation’s foreign-currency rating.

This comes as the rand strengthened 0.5% to R14.2856 per dollar by 07:51 on Tuesday, ending two days of declines. Yields on South African rand-denominated debt due December 2026 were little changed at 8.78%.

The move was part of a review of Fitch’s local-currency assessments, applying new criteria that resulted in downgrades for 23 issuer default ratings, the company said in a report that was first published on Friday, July 22. The outlook for South Africa’s rating was kept at stable.

“Whilst a change on technical criteria to the local ratings for South Africa, this does bring the narrative around local ratings entering sub-investment grade onto the table once again,” Peter Attard Montalto, Africa economist at Nomura in London, said in an e-mailed response to questions.

“It means a widely-expected downgrade of the foreign rating would also bring the local rating into junk.”

Fitch kept its evaluation of South Africa’s foreign-currency debt at BBB-, one step above sub-investment grade, in June after cutting it a level in December.

Moody’s Investors Service left South Africa’s credit rating at two levels above non-investment grade in May, while S&P Global Ratings kept its assessment at BBB-, one level above junk, last month.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.3%
Rand - Pound
24.07
+0.2%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.36
+0.5%
Rand - Yen
0.13
+0.7%
Platinum
901.37
-0.1%
Palladium
1,000.53
-0.6%
Gold
2,153.18
-0.3%
Silver
24.93
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,876
-0.6%
All Share
72,094
-0.5%
Resource 10
53,201
-0.2%
Industrial 25
99,443
-1.0%
Financial 15
16,630
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders