Fitch keeps ratings of SA’s major banks unchanged
The banks all have the same rating as Fitch says this reflects the overall outlook for the country.
JOHANNESBURG - Ratings agency Fitch Ratings has kept the ratings of the country's major banks unchanged at BB+ with a stable outlook.
The banks all have the same rating as Fitch says that this reflects the overall outlook for the country.
The agency currently has the country in sub-investment grade along with S&P Global Ratings, while Moody’s is the only one of the big three to have South Africa in positive territory.
Fitch says that in recent years the South African operating environment has been challenging due to political instability, resulting in volatility, a lack of confidence and low growth for banks.
It says larger banks have been able to navigate these challenges thanks to a favourable market structure, in which the largest four banks control over 80% of banking sector assets.
Fitch says the rating of the big banks reflects the larger national picture.
Agencies have so far kept their ratings for the country unchanged after Finance Minister Tito Mboweni’s medium-term policy budget speech.
But they have continued to express concern about government expenditure and other fiscal problems adopting a wait and see approach for now.
(Edited by Thapelo Lekabe)