Fitch lowers South Africa

Fitch Ratings said it downgraded South Africa's long-term foreign-currency issuer default rating to BBB from BBB+ and long-term local-currency issuer default rating to BBB+ from A.

The outlook is stable.

The agency also said it downgraded its short-term issuer default rating to F3 from F2 and country ceiling to A- from A.

Fitch also downgraded the common country ceiling of the common monetary area of South Africa, including Lesotho (BB-), Namibia (BBB-) and Swaziland (not rated) to A- from A in line with South Africa's country ceiling.

The economic growth performance and prospects have deteriorated, affecting the public finances and exacerbating social and political tensions, Fitch said.

In the five years to 2012, GDP growth averaged 2.2% in South Africa, compared with 4.7% for emerging markets as a whole, the agency said.

Weak growth reflects structural rigidities, declining competitiveness, policy uncertainty and labor unrest, Fitch said.

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