Fitch may up Nedbank

Fitch Ratings said it placed Nedbank Group Ltd.'s and Nedbank Ltd.'s long-term issuer default ratings, short-term issuer default rating and national long-term ratings on rating watch positive.

The agency also said it placed the long-term national of Nedbank's wholly owned subsidiary, Imperial Bank Ltd., on rating watch positive.

The watch placement follows news that HSBC Holdings plc has made a proposal to Old Mutual plc that could result in HSBC acquiring a controlling stake in Nedbank Group. HSBC's AA ratings and stable outlook are unaffected by the potential transaction, Fitch said.

HSBC's possible acquisition of the Nedbank Group and its integration into the HSBC international banking network should serve to strengthen and expand Nedbank Group's position in the South African banking sector, the agency said.

The deal should support Nedbank's strategy of growing its African franchise, Fitch said.

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