Moody's: African Bank view negative

Moody's Investors Service said it changed the outlook on African Bank Ltd.'s Baa3 long-term global scale senior debt and deposit ratings, and D+ standalone bank financial strength rating, to negative from stable.

The ratings were affirmed as part of this action.

Moody's said the change in outlook is driven by: (a) Its view that the bank's asset quality may deteriorate more severely than initially anticipated, partly because of the more pronounced deterioration in African Bank's 'Ellerines' originated portfolio (based on the bank's interim results); and (b) the weakening in the bank's earnings-generating capacity amid lower loan-related income and increasing loan-loss provisioning requirements.

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