Moody’s might cut South African banks

Moody's Investors Service said it placed the Baa2 long-term foreign-currency issuer ratings of the Development Bank of Southern Africa (DBSA), the Industrial Development Corp. of South Africa (IDC) and the long term local-and foreign-currency issuer ratings of the Land and Agricultural Development Bank of South Africa (Land Bank) on review for downgrade.

Land Bank's local- and foreign-currency and DBSA's foreign-currency short-term issuer ratings of Prime-2 were also placed on review for downgrade.

Moody’s said the action follows the potential weakening of the South African government's credit profile, in particular in the country's institutional, economic and fiscal strengths, as captured by the agency’s recent decision to place South Africa's Baa2 government bond ratings on review for downgrade.

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