Fitch: There are no rating changes

By on August 26, 2014

The London-based ratings agency, Fitch Ratings (Fitch) stated in a recent report that the canadian pharmacy salary latest failure, and bail-in of African Bank Limited is isolated and any contagion to South Africa’s five largest banks is likely to be limited, writes Krysia Gaweda. Fitch further stated that it does not change their view of the credit profiles of South Africa’s five largest banks, Absa Bank (Absa), FirstRand (FNB), Nedbank, Standard Bank and Investec so there are no ratings changes. South Africa’s five largest bank’s have ‘bbb’ range viability ratings, reflecting strong domestic franchises, which underpins stable core earnings, sophisticated risk management, and acceptable liquidity and capitalisation. However, the banks ratings are effectively capped by South Africa’s deteriorating operating environment since performance and asset quality are vulnerable to the weakening economy. In the report, Fitch also where do they sell viagra stated that the fallout from African Bank’s resolution will not be material, buy generic viagra and is underpinned by the small exposures the large five banks have to the failed lender. Fitch further went on to say the five banks are part of the consortium underwriting new capital in the good bank being created, but the commitment is not significant relative to each participant bank’s capital or balance sheet. Fitch does not consider African Bank to be systemically important and the resolution generic viagra online of African Bank does not change their approach to factoring in state support for South Africa’s systemically important banks, which have significant deposit franchises. However, in the context of their review of state support for banks globally, Fitch did announce in March earlier this year that they believe the propensity to support banks is reducing in South Africa with the impending adoption of resolution legislation. It seems however, that a moderate likelihood of support for systemically important banks will most likely remain. Fitch does not believe this reducing willingness to support will increase the probability of default for the large banks at current rating levels, which are one or two notches above ‘BB+’ Support Rating Floors (where applicable). It is likely that the SRFs will be revised to ‘BB-‘ in late 2014 or in 1H15 to acknowledge a broader range of resolution tools becoming available to the


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