Fitch downgrades South African banks

Fitch Ratings said it downgraded the long-term issuer default ratings of five South African banks to BB+ from BBB-. The banks affected are Absa Bank Ltd., FirstRand Bank Ltd., Investec Bank Ltd., Nedbank Ltd. and Standard Bank of South Africa.

The agency also downgraded the long-term issuer default ratings of four bank holding companies, Barclays Africa Group Ltd., Investec Ltd., Nedbank Group Ltd. and Standard Bank Group Ltd., to BB+ from BBB-.

All entities' short-term issuer default ratings were downgraded to B from F3.

At the same time, Fitch downgraded the support rating of the government-owned Development Bank of Southern Africa to 3 from 2 while affirming its national long-term rating at AA+(zaf) with a stable outlook.

Fitch said the downgrades result from South Africa's April 7 sovereign long-term foreign- and local-currency issuer default ratings to BB+ from BBB-.

The outlooks on all long-term issuer default ratings are stable, in line with the outlooks on the sovereign's long-term issuer default ratings.

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