Outlook On South African Banks Now Negative After Same Action On Sovereign; National Scale Ratings Lowered

Overview
• On Nov. 22, 2019, S&P Global Ratings revised its outlook on South Africa to negative on weakening fiscal and debt trajectory and sizable contingent liabilities.
• We do not rate financial institutions in South Africa above the foreign currency sovereign ratings, due to the direct and indirect impacts a sovereign distress would have on banks' operations.
• We have therefore revised the outlook to negative from stable on FirstRand Bank Ltd., FirstRand Ltd., Nedbank Ltd., Investec Bank Ltd., Capitec Bank Ltd., and African Bank Ltd. We affirmed our global scale ratings on all of these entities.
• At the same time, we have lowered our long-term national scale ratings on Absa Bank Ltd., FirstRand Bank Ltd., FirstRand Ltd., Nedbank Ltd., Investec Bank Ltd., and BNP Paribas Personal Finance South Africa Ltd, and we have affirmed our short-term national scale ratings on these entities.
• In addition, we have affirmed our global and national scale ratings on African Bank Ltd. and Capitec Bank Ltd.

JOHANNESBURG (S&P Global Ratings) Nov. 26, 2019--S&P Global Ratings Services today revised its outlook to negative from stable on FirstRand Bank Ltd., FirstRand Ltd., Nedbank Ltd., Investec Bank Ltd., Capitec Bank Ltd., and African Bank Ltd. We affirmed our 'BB/B' long- and short-term global scale issuer credit ratings on FirstRand Bank Ltd., Nedbank Ltd., Investec Bank Ltd., and Capitec Bank Ltd. We also affirmed our 'B+/B' issuer credit ratings on FirstRand Ltd. and African Bank Ltd.

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