SA sticks to its guns after Fitch cut

Cape Town 101028. Deputy Finance Minister, Nhlanhla Nene is his 120 Plein Street office. PHOTO SAM CLARK, CA, Gaye Davis

Cape Town 101028. Deputy Finance Minister, Nhlanhla Nene is his 120 Plein Street office. PHOTO SAM CLARK, CA, Gaye Davis

Published Jun 13, 2014

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Johannesburg - South Africa's treasury said on Friday it was committed to the fiscal path stated in the budget, after Fitch ratings agency changed the country's outlook to negative from stable.

“We are committed to the fiscal path and expenditure ceiling. While short-term cyclical factors might cause marginal deviations from targets, we will not deviate from the long term trajectory,” the Treasury said in a statement.

Fitch affirmed South Africa credit rating at BBB but raised concerns about the poor growth outlook and persistent budget shortfalls that force the government to borrow more and push out plans for more sustainable spending. - Reuters

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