Reaction to South Africa's negative outlook rating

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The National Treasury says government remains committed to fiscal stability.

The Treasury was reacting to Fitch ratings agency's decision to revise South Africa’s outlook to negative from stable, saying the country’s growth outlook had deteriorated and this would make it challenging to reduce the budget deficit.

Treasury says in a statement that Fitch’s concerns about growth arise partly from the crippling 5-month long strike in the platinum mining sector.

In a separate statement, the Steel and Engineering Industries Federation of Southern Africa said although it had not come as a surprise, Fitch’s review of South Africa’s economic outlook from stable to negative was "deeply regrettable".

Meanwhile, AMCU President Joseph Mathunjwa confirmed on Friday that the union had accepted a new wage offer from platinum mining bosses which it accepted in principle.

He said, however, that there were outstanding issues which need to be discussed.

Impala Platinum's Johan Theron said mining companies would meet the union again during the course of on Friday.