1st Dec 2020 12:41
(Alliance News) - Johannesburg-listed Investec Ltd on Tuesday announced it has been downgraded by Fitch Ratings, with its outlook remaining negative.
Fitch has downgraded the long-term issuer default ratings, or IDRs, of investment and private banking group Investec to BB- and BB. Additionally, the company's viability rating, or VR, was downgraded to BB- from BB.
"The rating actions follow Fitch's downgrade of the South African sovereign's long-term IDRs to BB- from BB on November 20. Fitch considers that South African banks cannot be rated above the South African sovereign given the high concentration of their activities within South Africa and significant sovereign exposure (dominated by government debt but also includes that of public-sector corporates)," Investec said.
Investec added however, that the downgrades are expected to have an immaterial impact on its risk weighted assets as well as on regulatory capital.
The downgrade did not affect Investec PLC, which is listed on the London Stock Exchange, and which houses Investec's non-Southern African operations.
Investec shares were 3.4% higher at 191.90 pence each in London on Tuesday afternoon. In Johannesburg, shares were 2.0% higher at ZAR38.41.
By Greg Roxburgh; [email protected]
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