S&P cuts rating of SA’s financial institutions
Banks play down cost of downgrade, but analysts say they will be passed on to borrowers
Most of the banking sector does not expect S&P Global Ratings’s decision on Thursday to downgrade ratings at SA’s leading banks to significantly affect their cost of funding or disrupt operations, even as analysts warned that funding costs would increase markedly and that these costs would be passed on to consumers over time. The ratings agency has brought the counterparty credit ratings of FirstRand Bank, Nedbank, Investec Bank and Absa in line with government’s foreign-currency rating of BB+, the first rung in the non-investment grade basket. They all had a negative outlook. S&P does not rate Standard Bank or Capitec Bank. If you are already a subscriber, please click on the following link below to go to the full article: Banks play down cost of downgrade If you would like to subscribe to BusinessLIVE Premium to read the full story, please click here: Subscribe Premium content is not yet available on the app. Please use the desktop site to subscribe.
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