Fitch lifts Investec to stable

Fitch Ratings said it affirmed Investec Bank Plc's long-term issuer default rating at BBB-, viability rating at BBB-, short-term issuer default rating of F3 and viability rating at BBB-.

The agency also said it revised the bank's outlook to stable from negative.

Fitch also affirmed the bank's junior subordinated debt at BB-, senior unsecured certificates of deposit at BBB- and F3, senior unsecured euro medium-term note program at BBB- and F3 and subordinated debt at BB+.

The ratings reflect the bank's intrinsic strength, concentrated property exposure and weak earnings due to various challenges and the realignment of its business model over the past three years, the agency said.

The ratings also consider its acceptable capitalization, stable funding and strong liquidity, Fitch said.

The outlook revision reflects an opinion that asset quality has stabilized and that the tail risks remaining in the bank's loan book have been reduced through provisions and recoveries to the extent that they are unlikely to put material pressure on the bank's capitalization, the agency said.

While profitability remains weak, Fitch said it does not expect any major deterioration of asset quality and considers that the bank's modest, but improving earnings should be sufficient to absorb credit losses in the medium term.

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