S&P Global Ratings on April 5 downgraded the counterparty credit ratings of most of South Africa's largest banks, following a similar action on South Africa on April 3.
The rating agency downgraded the long- and short-term counterparty credit ratings of FirstRand Ltd. unit FirstRand Bank Ltd., Old Mutual Plc unit Nedbank Ltd. and Investec Ltd. unit Investec Bank Ltd. to BB+/B from BBB-/A-3, with a negative outlook.
The agency also downgraded the long-term counterparty credit rating of FirstRand to BB- from BB+, with a negative outlook, and affirmed the short-term rating at B. The senior unsecured rating of FirstRand Bank was downgraded to BB+ from BBB-.
At the same time, S&P downgraded the long-term national scale ratings of FirstRand Bank, Nedbank, Investec Bank and Barclays Plc unit Absa Bank Ltd. to zaA from zaAA- and affirmed the short-term rating at zaA-1. The long- and short-term national scale ratings of FirstRand and Barclays Plc unit Barclays Africa Group Ltd. were downgraded to zaBB+/zaB from zaA/zaA-2.
The banks' ratings reflect that on South Africa, which was downgraded after President Jacob Zuma fired the country's finance minister and made other executive changes, impacting the country's fiscal and growth outcomes.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.