Fitch Archives - Radar Africa

Fitch upgrades Tunisia’s rating to ‘CCC+’

Fitch Ratings said Monday that it upgraded Tunisia’s long-term foreign currency issuer default rating to “CCC+” from “CCC-.” The rating agency said the upgrade reflects the country’s stronger external position and the government’s ability to meet its large fiscal financing needs. Those factors, however, are balanced against limited access to external financing, uncertainty over the ability and willingness of the banking sector to take on large volumes of domestic debt, and a budget that remains vulnerable to external shocks. Fitch said the Tunisian government requires 10% of GDP in long-term domestic financing this year and 10%-12% in 2025 and 2026. “We believe the domestic banking sector could help meet the sovereign’s financing needs, as deposit growth and weak credit demand support sector liquidity,” the rating agency said in a statement. “Nevertheless, this will increase banks’ exposure to the public sector, which already represents about 20% of the banking sector’s total assets, necessitating refinancing to local banks by the central bank,” it added.

Fitch affirms South Africa’s BB- rating with stable outlook

Business / fatih

Fitch Ratings said Friday it affirmed South Africa’s long-term foreign currency issuer default rating at BB- with a stable outlook. The rating agency said South Africa’s rating is supported by the country’s favorable debt structure, strong institutions and a credible monetary policy framework. Those factors, however, are balanced against low real GDP growth, a high level of poverty and inequality, and a high government debt/GDP ratio. Fitch said it expects real GDP growth of 0.9% this year, after 0.7% last year. Real GDP is forecast to show growth of 1.5% in 2025 and 1.3% in 2026. “Growth is hampered by a struggling logistics sector, deeply entrenched structural factors, particularly high levels of inequality, poverty and unemployment, and weak investment,” it said in a statement. “We expect the weakness to persist, despite robust demographics,” it added. “Electricity shortages, which dragged on growth in 2022 and 2023, are expected to ease, but sporadic incidents of load-shedding could still occur.” While headline inflation eased to 4.6% in July, Fitch expects it to fall to 4.5% by the end of the year, 4% in 2025 and 2026, as food and oil prices continue their slowdown.

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