Standard & Poor’s said that it sees signs of change in the corporate lending landscape in South Africa, in a report published today, “Tough Conditions, Strong Potential: South African Corporate Credit Outlook.”
Creditors of the Ellerine furniture business of failed South African lender Abil overwhelmingly voted on Monday for a gradual wind-down of the company, avoiding an immediate liquidation.
A Thai woman set herself on fire inside a Bangkok government building Wednesday after she was unable to pay off loans of $46,000
The bank of Englandās governor commented a while back that, “The economy has edged closer to the point at which the bank will gradually need to raise.” Janet Yellen, Federal Reserve chair also faces mounting pressure to raise rates. If current UK and US macro-economic conditions persist interest rates should start rising by year end.Ā This … Read more
JOHANNESBURG (Reuters) – South Africa’s Capitec Bank flagged on Thursday it expected first-half earnings to rise by as much as 22 percent, in sharp contrast to rival African Bank Investments, which was rescued by the central bank last month. Capitec, like African Bank, is an unsecured lender that traditionally targeted lower-income South Africans. Following African Bank’s collapse, ratings … Read more
By Tiisetso Motsoeneng JOHANNESBURG (Reuters) –Ā South Africa’s central bankĀ has disputed credit rating agency Moody’s downgrade of Capitec Bank, saying it disagreed with the rationale behind the two-notch rating cut for the local lender. Moody’s cut the financial strength rating of the lender to D from D+ on Friday and deposit ratings to Ba2/NP from Baa3/P-, … Read more
Global ratings agency Moody’s announced this evening that it has cut Capitec’s credit rating by two notches because of concerns about the SARB’s likely support and the worsening economy. The full release is published below. For Capitec’s response, click here. From Moody’s: Limassol, August 15, 2014 — Moody’s Investors Service has today downgraded Capitec Bank … Read more
By Alec Hogg I received interesting response from yesterday’s newsletter regarding Coronation’s dumping of 170m Abil shares after the profit warning. Including an insider who suggested the asset manager, which for months had been former CEO Leon Kirkinis’s biggest supporter and at 20% Abil’s biggest shareholder, either employs clairvoyants or had some insights the rest … Read more
(Reuters) – Wholesale depositors and investors who own senior debt issued by African Bank Investments will not be able to access their funds or receive any interest payments while the unsecured lender is under outside supervision as part of its $1.6 billion bailout. South Africa’s central bankĀ stepped in to rescue African Bank, known as Abil, … Read more
Market watchers and commentators reacted with surprise and confusion to the downgrading of Naspers‘ senior unsecured debt to ‘junk status’ which is identifiedĀ as non investment grade by Fitch. The general consensus is that the ratings agency is far off the mark with many finding the move unfounded, given the success and position of Naspers. Fitch’s … Read more