By Lehlohonolo Lehana.
Fitch Rating Agency upgraded South Africa’s Long-Term Issuer Default Rating to ‘BB’ from ‘BB-‘, according to the statement issued on Friday, 05 June 2026.
The credit assessor, cited the country’s record of prudent fiscal management and progress on fiscal consolidation despite weak economic growth and external shocks.
Fitch said South Africa’s rating remained constrained by high inequality and a high interest-to-revenue ratio but that it was supported by a favourable government debt structure with long maturities and mostly local-currency denomination.
It expects government debt to stabilise at around 80% of GDP over the next two years, supported by continued primary surpluses, stronger revenue collection and improved market sentiment.
Fitch’s upgrade comes after Moody’s Rating Agency last month shifted its outlook on South Africa’s ‘Ba2’ rating to positive from stable.
National Treasury said it was Fitch’s first upgrade in almost 21 years and that it was committed to sound public finances and implementing economic reforms.
South Africa still has some way to go to regain its investment-grade credit rating but for the first time in more than a decade we are seeing a clear turnaround in the downward ratings trend,” Treasury Director-General Duncan Pieterse said.
Government debt has now stabilised and is forecast to decline this year and over the medium term, Pieterse said, marking a key milestone in South Africa’s fiscal consolidation efforts. In the February budget, Finance Minister Enoch Godongwana forecast debt would peak at 78.9% of GDP before easing to 68.3% by 2033-34.