S Africa's Treasury welcomes Fitch upgrade to BB with stable outlook

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S Africa's Treasury welcomes Fitch upgrade to BB with stable outlook The National Treasury has welcomed credit rating agency Fitch's decision to upgrade South Africa's long-term foreign and local currency credit ratings to 'BB' from 'BB-' and to maintain its stable outlook. The upgrade reflects South Africa's record of prudent fiscal management and its progress on fiscal consolidation, despite weak economic growth and domestic and external shocks. This, together with GDP revisions, leaves the government debt-to-GDP ratio well below levels anticipated at the time of the rating downgrade to 'BB-' in 2020. This is Fitch's first rating upgrade on South Africa in almost 21 years. South Africa is the second Group of 20 country to be upgraded by Fitch this year, Treasury notes. According to Fitch, South Africa has transitioned from primary fiscal deficits to consistent and widening primary surpluses, alongside signs that government debt is stabilising amid improved revenue collection and disciplined expenditure management. The long average-maturity of total government debt, at more than ten years, and low share of foreign-currency-denominated debt support the sovereign rating, it adds. Fitch also points to ongoing reforms in the energy and logistics sectors that are expected to support economic growth in coming years as reason for the upgrade, says Treasury. Credit rating agency S&P Global Ratings upgraded South Africa's rating by one notch in November 2025 and credit rating agency Moody's put the country's rating on a positive outlook. All three major rating agencies now have South Africa on 'BB' or 'Ba2', which is two levels below investment grade. Moody's and S&P have the sovereign on a positive outlook, which indicates they could upgrade their ratings within 12 to 18 months. Government remains committed to sound public finances and to implementing structural reforms that will support higher and more inclusive economic growth and underpin investor confidence, says Treasury director-general Dr Duncan Pieters