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Moody`s boosts SA banks` ratings
Prompted by its decision to upgrade the country
rating ceilings for SA, which now stand at Baa1/Prime-2
for both foreign currency bank deposits and foreign
currency debt, I-Net Bridge reports that Moody`s
Investors Service has raised to "Baa1"
(with a stable outlook) the foreign currency long-term
deposit and issuer ratings for six SA banks. The
deposit ratings for Absa, FirstRand Bank Ltd, Investec
Bank Ltd, Nedbank Ltd, and Standard Bank of SA have
been raised to Baa1/Prime-2 from Baa2/Prime-2. Also,
the issuer rating for the Development Bank of Southern
Africa has been raised to Baa1 from Baa2. And according
to Ernst & Young`s quarterly index of the SA
banking sector, confidence among retail banks has
risen from 95% in the third quarter of last year
to 99% at the end of 2004, driven by low interest
rates, declining bad debt and soaring markets. Merchant
and investment banks remained 100% confident about
industry conditions for the final three quarters
of the year.
Source: Liberty Life, Financial News, 17 Jan'
2005 |
