Moody's lowers two South Africa banks to negative

Moody's Investors Service said it changed the outlook to negative from stable on the A3 foreign-currency long-term issuer rating of South Africa's two rated development finance institutions, Development Bank of Southern Africa and Industrial Development Corp. of South Africa.

The outlook change was triggered by the recent change in the outlook of the A3 government rating to negative from stable.

In view of the 100% government ownership of the banks, Moody's said it continues to believe that the South African government remains committed to supporting these two entities in case of need.

The ratings and outlook of these institutions are fully aligned with those of South Africa's A3 government bond rating with a negative outlook, the agency said.

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