Moody's downgrades South Africas five biggest banks.

By bne IntelliNews March 1, 2012
Moody's Investors Service said it has downgraded by one notch the senior debt and deposit ratings of South Africas five largest banks, reflecting the impact of the country's increasingly constrained public finances and the agencys view that authorities would face challenging policy choices if multiple institutions were to need its financial support at the same time. The banks downgraded include the big four banks Standard Bank, Absa Bank, FirstRand Bank and Nedbank, as well as Investec Bank. The downgrade is not driven by deterioration in the standalone financial strength or the financial performance of the five banks, Moodys noted. It added that the reduced capacity of South African authorities to provide support to financial institutions if needed stems was one of the reasons for the downgrade of its outlook on South Africa's A3 rating to negative from stable in November 2011. Moody's also believes that the five largest South African banks are systemically important institutions for the country's payment system, and that authorities would be willing to support them if required, the agency said in a statement. Moreover, Moodys downgraded African Banks provisional foreign-currency subordinated debt rating to Ba1 from Baa3.

Related Articles

South Africas Exxaro mulls firing striking coal miners.

South African company Exxaro Resources said one of the options it currently considers is dismissing striking coal mine workers who fail to return to work in the week of March 25, fin24 reported ... more

South Africas Telkom says there is no decision to lay off 13,000 employees.

South Africas telecommunication operator Telkom said that it has not made a decision on retrenching 13,000 employees, or more than half of its staff, TechCentral reported quoting a company ... more

BP, Masana Petroleum Solutions sell LPG business in South Africa.

Oryx Energies, a major independent provider of oil and gas products and services in Africa, has agreed to buy the South African liquefied petroleum gas (LPG) distribution businesses of BP and ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335