Barclays Africa insists it will survive double whammy
The group announced its intention to sell its stake in Africa, while Fitch downgraded its rating.
Early last week, the Barclays group announced that it intends to sell its 62.3 percent stake in Africa.
Chief Executive Officer Maria Ramos says the decision was influenced mainly by global regulatory factors.
Barclays Africa says it has noted the change in Fitch's rating that takes it one notch down from its previous position.
Fitch announced late on Friday that it had downgraded the African unit's foreign currency and local currency long-term issuer default ratios to BBB-, from BBB and BBB+ respectively, saying it sees a limited probability of support from Barclays in the transition phase up to the point of sale.
It is now on par with the ratings of other major South African banks having previously been ranked above them.
The bank says the move has no bearing on its financial status, neither will it affect its funding.
Absa still insists that it is well-capitalised and independent, because it's listed separately on the Johannesburg stock exchange.
There's been much speculation around who might buy the Barclays Africa stake, but no clear bidders have emerged yet.
LISTEN: Maria Ramos on why Barclays is getting out of Africa