Fitch downgrades Nedbank

Fitch Ratings said it downgraded Nedbank Ltd.'s long-term foreign- and local-currency issuer default ratings to BBB from BBB+ and national long-term rating to AA-(zaf) from AA(zaf).

The F2 short-term foreign-currency issuer default rating, F1+(zaf) national short-term rating, C individual rating and 2 support rating were affirmed.

The outlook was revised to stable from negative.

The agency said the downgrade reflects the impact of a deteriorating macroeconomic environment in South Africa, which has resulted in declining asset quality trends and, as a result, weakening profitability indicators.

Notwithstanding, Nedbank's ratings continue to reflect the benefits from a well-established and growing domestic franchise as one of the four largest banks in South Africa, Fitch said, and the strong franchise should underpin its revenue-generating ability through this tough economic cycle.

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