Fitch rates South Africa bond BBB+

Fitch Ratings said it assigned a BBB+ rating to the Republic of South Africa's forthcoming dollar-denominated bond maturing in May 2022 offered to holders of the republic's existing international bonds. The tender and exchange offer is for a minimum of $750 million.

South Africa's ratings are underpinned by a track record of prudent fiscal and monetary policies and moderate public and external debt burden, Fitch said.

The outlook on South Africa's BBB+ foreign-currency and A local-currency ratings is stable.

The strong fiscal position and tightening of monetary policy is expected to moderate private credit growth and stabilize the current account deficit, both of which have been a source of concern, the agency said.

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