SA was dealt another blow late on Friday when Fitch Ratings downgraded the country further into junk, just a week after Moody’s Investors Service stripped the country of its last remaining investment grade. The rand extended its losses and crashed through R19/$.
Fitch said it had cut SA one notch to BB from BB+ because the country lacked a “clear path towards” stabilising its debt position, a situation that would be worsened by the effect of the Covid-19 shock on economic growth and public finances.
It maintained a negative outlook, meaning the next move is more likely to be further down the junk scale.
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BY LUKANYO MNYANDA