Fitch downgrades South Africa's credit rating to "junk" status

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Ratings agency Fitch downgraded South Africa‘s credit rating to sub-investment grade on Friday, saying a recent cabinet reshuffle that saw respected finance minister dismissed will likely result in a change in economic policy direction.

Fitch changed its outlook for South Africa to stable from negative. Fitch’s downgrade to BB+ from BB- on both foreign and local currency debt follows that of S&P Global Ratings which also cut South African foreign debt to “junk” status.

Downgrades to junk from the two agencies could see South Africa drop out of some widely used global bond indexes.

Read more: Fitch downgrades South Africa’s credit rating to “junk” status

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