Fitch cuts South African Banks

Fitch Ratings said it downgraded the long-term issuer default ratings of five South African banks: Absa Bank Ltd., FirstRand Bank Ltd., Investec Bank Ltd., Nedbank Ltd. and the Standard Bank of South Africa Ltd. to BB. The outlook is negative.

Fitch also took similar rating actions on the long-term IDRs of four South African bank holding companies, namely Absa Group Ltd., Investec Ltd., Nedbank Group Ltd. and Standard Bank Group Ltd. All National long-term ratings and debt ratings (where applicable) have also been downgraded. The outlook on the national long-term ratings is revised to negative from stable.

“The rating action is driven by the expected negative impact from the coronavirus outbreak on the banks' operating environment and key financial metrics, notwithstanding uncertainty as to the full economic and financial market implications,” Fitch said in a press release.

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