Fitch Ratings raised South Africa's debt rating on Friday for the first time in 20 years.
The country saw its rating rise from BB- to BB, an improvement that crowns in particular “prudent fiscal management and progress made on the fiscal consolidation front” according to the agency.
South African debt is expected to stabilize over the next two years at around 80% of GDP, according to Fitch.
South African authorities welcomed the revision. In a statement released Friday, the government reaffirmed its commitment to “maintaining sound public finances and implementing structural reforms” to foster economic growth.
"Better sovereign debt ratings help reduce borrowing costs for the government, businesses and households, and bring tangible benefits to citizens ," commented Treasury Director General Duncan Pieterse, quoted in the press release.
"South Africa still has a long 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 reversal of the downward trend in ratings ," continued Mr. Pieterse.
With this decision, Fitch follows in the footsteps of S&P Global, which had already raised the rating of Africa's largest economy from BB- to BB in November.
Last month, Moody's raised the outlook for South Africa's sovereign rating from "stable" to "positive".
Alongside its upward revision, Fitch nevertheless highlighted the weak real GDP growth and the high level of poverty and inequality in South Africa.
