S&P won’t follow SA bank downgrade by Moody’s
By Joe Brock
JOHANNESBURG (Reuters) – Ratings agency Standard & Poor's said on Thursday it had no plans to downgrade South African banks, easing concerns a cut by Moody's on the country's four biggest lenders this week could have a knock-on ratings impact.
The ratings firm said SARB had limited the risk of contagion but showed it was willing to impose loses on creditors.
Pirnie at S&P said it made its ratings decisions on South African banks using a different measure to Moody's.
"In a long time we have not placed government support into the ratings of South African banks because … the banks are pretty good in comparison to the country they operate in," Pirnie said.
"We don't believe that the African Bank failure poses a systemic risk, therefore we wouldn't move down specifically because of that," he added.