EZA - South Africa's rating sinks further into junk territory with Fitch cut

Fitch Ratings downgrades South Africa's long-term foreign-currency issuer default rating to BB- from BB; outlook negative.The cut reflects "high and rising government debt, exacerbated by the economic shock triggered by the COVID-19 pandemic," the ratings company said."The very low trend growth and exceptionally high inequality will continue to complicate fiscal consolidation efforts."Fitch expects South Africa's GDP to remain below 2019 levels even into 2022; sees GDP contracting by 7.3% in 2020.S&P Global Ratings, meanwhile, affirmed South Africa's long-term foreign and local currency ratings at BB- with a stable outlook.ETFs: [[EZA]], [[FLZA]]

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South Africa's rating sinks further into junk territory with Fitch cut