The National Treasury said in a statement on Friday Fitch lifted the country's foreign currency rating from BBB- to BBB, a move that should help to cut the cost of offshore borrowings.
The long-term local currency rating was also upgraded from BBB+ to A-. The outlook for both ratings was stable.
"Fitch cites South Africa's track record on fiscal management as the key factor underpinning improvements in South Africa's credit worthiness.
"The downward trend in public debt external ratios since 1995, fast export growth, as well as a sound and consistent monetary policy management regime are also positive factors that have contributed to the rating upgrade," it said.
Other major international ratings agencies, Moody's and Standard & Poors have, over the past six months, both given South Africa's ratings a positive outlook.
The Treasury said in light of the sovereign rating upgrade, Fitch had upgraded the ratings for five South African banks, namely Absa, Firstrand, Investec, Nedcor, and Standard Bank.
"These ratings upgrade confirm the National Treasury's long held view that the macroeconomic management path that the leaders of our country have embarked on is correct and will -- as it already does -- bear fruit."
The announcement was particularly significant as it was made on the eve of a roadshow in Europe that would precede the issuance of a Euro-denominated bond, it said - Sapa
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