The agency also cited sustained primary budget surpluses, improved revenue collection, disciplined spending management and ongoing reforms in the energy and logistics sectors as key factors behind the upgrade.
South Africa has received a major vote of confidence from global credit ratings agency Fitch Ratings, which upgraded the country's long-term foreign and local currency credit ratings to BB from BB-, marking the first upgrade by the agency in almost 21 years.
The upgrade, announced on Friday, reflects what Fitch described as South Africa's prudent fiscal management and progress in consolidating public finances despite weak economic growth and a series of domestic and international economic shocks.
According to Fitch, South Africa's debt-to-GDP ratio is now significantly lower than levels anticipated when the agency downgraded the country to BB- in 2020.
The agency also cited sustained primary budget surpluses, improved revenue collection, disciplined spending management and ongoing reforms in the energy and logistics sectors as key factors behind the upgrade.
