SA at risk of downgrade

Ratings agency Fitch said on Tuesday the risk of a downgrade to South Africa's sovereign rating was increasing.

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London - Ratings agency Fitch said on Tuesday the risk of a downgrade to South Africa's sovereign rating was increasing.

In June, Fitch confirmed its BBB rating for South Africa with a negative outlook.

“Since we put South Africa on a negative outlook in December 2014, the news flow has largely been negative,” said Carmen Altenkirch, director at Fitch Ratings speaking at a conference in London.

The only bright spot being the improvement in current account, she said.

“[However], given how much the rand has depreciated particularly against the dollar we would have expected perhaps a more significant rebound in exports,” she added.

“On balance, I would think that the risk of a downgrade is increasing.”

REUTERS