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S&P downgrades Development Bank of Southern Africa after sovereign rating cut

S&P Global Ratings on April 6 downgraded Development Bank of Southern Africa, after the country's ratings were cut to junk status on April 3.

The agency downgraded the bank's long- and short-term foreign-currency issuer credit ratings to BB+/B from BBB-/A-3 and its long- and short-term local-currency issuer credit ratings to BBB-/A-3 from BBB/A-2, with negative outlooks.

Also downgraded was the bank's local-currency senior unsecured rating to BBB- from BBB.

S&P equalized the ratings with those of South Africa, reflecting an almost certain likelihood that the government would provide support to the lender if needed.

S&P said that the state-owned lender plays a critical role for, and has an integral link with, the South African government.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.