JOHANNESBURG (Reuters) – Shares of South Africa’s Capitec Bank sank more than 5 percent in early trade on Monday after a Moody’s ratings downgrade that cited concerns about the bank’s exposure to risky consumer lending. The ratings agency cut Capitec’s financial strength rating to “D” from “D+” late on Friday and downgraded the bank’s bank deposit rating by two … Read more
From Capitec Bank On 15 August 2014, Moody’s Investor Service (Moody’s) downgraded Capitec Bank’s international deposit ratings to Ba2/NP from Baa3/P-3 and its national scale ratings to Baa1.za/P-2.za from A2.za/P-1.za. All ratings with the exception of the short term No Prime ratings were also placed on further review. The reasons for the downgrade, according to … Read more
By Tiisetso Motsoeneng JOHANNESBURG (Reuters) – South Africa’s central bank 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
A couple of global ratings agencies have been making some mis-steps lately. Almost a reminder of the 2008 debacle when they got the credit ratings of US banks to terribly wrong, so over-corrected in an attempt to regain lost credibility. First we heard that Fitch had downgraded Naspers’s debt  to junk status, using an overly rigid … Read more
Capitec Bank says it has become an unwitting victim of the Abil collapse as global ratings agency Moody’s this evening announced a two notch downgrade of Capitec’s credit rating. The bank’s financial director Andre du Plessis described the Moody’s decision as a “total knee jerk reaction – we had a 30 minute telephone conversation with … 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
Moody’s has downgraded African Bank Limited’s local national scale issuer ratings to Caa2.za/Not Prime.za from A3.za/P- 2.za and its global senior debt and deposit ratings to Caa2/Not Prime, from Ba1/Not Prime. In addition, the long term global and national scale ratings have been placed on review for a further downgrade. Moody’s stated that the downgrade … Read more
JOHANNESBURG (Reuters) – South Africa’s African Bank Investments said on Monday it was in talks to sell its loss-making Ellerines unit, a furniture selling business the unsecured lender has been trying to shed. Its shares soared more than 15 percent to 7.75 rand on the rare piece of good news for the company, which has seen its bad … Read more