Fitch Ratings upgraded South Africa’s long-term foreign and local currency ratings from BB- to BB on 5 June with a stable outlook, the agency’s first upgrade for the country in more than 20 years.
Fitch Ratings cited South Africa’s record of prudent fiscal management and progress on fiscal consolidation despite weak economic growth. Debt-to-GDP levels are now well below those anticipated when the rating was downgraded to BB- in 2020. The agency also highlighted the country’s low levels of foreign-currency debt. Finance Minister Enoch Godongwana’s team has contained debt through an end to bailouts for state-owned enterprises, a wage agreement capping increases at 4 percent for the 2026 financial year, and a public-sector early retirement scheme. Ongoing reforms in energy and logistics are expected to support higher growth. National Treasury director-general Dr Duncan Pieterse described the move as a clear turnaround after more than a decade of downward ratings pressure and said details of a fiscal anchor to stabilise and eventually reduce debt will be announced in the 2026 Medium Term Budget Policy Statement. The upgrade follows S&P Global’s one-notch upgrade in November 2025 and Moody’s decision to change its outlook to positive. All three major agencies now rate South Africa two notches below investment grade. The government anticipates further reviews from Moody’s and S&P Global within the next 12 to 18 months.
