Fitch upgrades Nedbank

Fitch Ratings said it upgraded Nedbank Ltd.'s and Nedbank Group Ltd.'s (Nedbank) viability ratings to BBB+ from BBB.

Also upgraded includes Nedbank Group's long-term foreign-currency issuer default rating to BBB+ from BBB, long-term local-currency issuer default rating to BBB+ from BBB and national long-term rating to AA(zaf) from AA-(zaf). The agency also affirmed its short-term foreign-currency issuer default rating at F2 and national short-term rating at F1+(zaf).

Nedbank's long-term foreign-currency issuer default rating also was upgraded to BBB+ from BBB, long-term local-currency issuer default rating to BBB+ from BBB, viability rating to BBB+ from BBB, national long-term rating to AA(zaf) from AA-(zaf), senior unsecured notes to BBB+ from BBB, senior unsecured notes to AA(zaf) from AA-(zaf) and subordinated notes to BBB from BBB-.

The agency also said it affirmed its short-term foreign-currency issuer default rating at F2 and national short-term rating at F1+(zaf).

The outlook is negative.

The upgrades reflect a view that these entities' credit profiles have converged with peers, Fitch said.

This is in line with a trend across the four major South African banks of improving asset quality, lengthening funding profiles and acceptable levels of capital, the agency said.

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