Tag Archives: Fitch

Fitch: Latest News

  • Opinion: South Africa’s Tech Startups Can Ride Out Junk Ratings Status

    By Tom Jackson, 1:00 am AFKI Original

    South African startups were the most popular in Africa for investment in 2016, with Cape Town and Johannesburg establishing themselves as hubs. Junk status could have a serious impact on this. Michael Jordaan, former CEO of South Africa’s First National Bank, is now an investor in innovative tech startups. The ratings downgrade is bad news for the economy as a whole but startups will be less affected than larger firms, he told AFKInsider. “Startups need to dominate a niche at first and in this sense the macro economy is a very small factor,” he said. “Startups should take comfort that they will survive and thrive if they keep their customers happy.”

  • Fitch Joins S&P In Downgrading South African Credit Rating To Junk Status

    South African credit rating By Reuters, 12:25 pm

    Fitch said Zuma’s recent cabinet reshuffle will likely result in new economic policy. Downgrades to junk — first by S&P on Monday and today by Fitch — could see South Africa fall off some global bond indexes. This may force international funds that are prohibited from holding sub-investment grade securities to sell. There is still is a huge wealth gap between blacks and whites, Zuma said in his SONA address. Zuma’s presidency has been riddled with corruption accusations and money-related scandals. He has called for radical economic transformation.

  • Taking On Wall Street’s Big 3: Carlyle Acquiring Top African Credit Ratings Agency

    Carlyle acquiring top African credit ratings agency By Dana Sanchez, 5:02 pm

    In a sign that local credit ratings are becoming more lucrative in Africa, U.S. buyout firm Carlyle agreed to become the largest shareholder in Africa’s largest rating agency. GCR rates more credits on the continent than giants Fitch, Moody’s and S&P. Growth is constrained in the present credit ratings system, said the president of the BRICS New Development Bank. The Big 3 rate over 90% of the global sovereign ratings market. GCR specializes in national-level ratings, which rely less on a country’s sovereign rating.

  • BRICS Members Divided On Creating Their Own Credit Rating Agency, Worry About Credibility

    BRICS credit rating agency By Staff, 3:04 pm

    Efforts to set up a BRICS credit rating agency hit a roadblock Sunday. China is concerned and not in favor. Some members worry about lack of credibility and access to dependable data as they take on Wall Street’s Big 3 — S&P, Fitch and Moody’s. Fraud charges against South African Finance Minister Pravin Gordhan have raised fears the country is moving closer to a junk rating by Wall Street credit ratings services.

  • FOREX Africa: A Rating Downgrade Could Be Good For The South African Rand

    South African Rand Market By Kevin Mwanza, 11:04 am

    The South African rand could strengthen if credit rating agencies downgrade the country’s debt to junk status at the end of this year, according to economist Dawie Roodt. The country’s struggling economy is facing possible credit downgrades by the global rating agencies Moody’s, Standard & Poor’s and Fitch by the end of the year after escaping the cut in June.

  • South Africa Avoids Credit Rating Downgrade To Junk

    South Africa Avoids Credit Rating Downgrade To Junk By Dana Sanchez, 3:44 pm

    Fifteen countries have had their investment-grade ratings revoked including India — twice. It took an average of seven years to regain their status. In May, South Africa escaped a downgrade from credit rating firm Moody’s, which held its rating at Baa2. Fitch is expected to issue its review next week. Like S&P, Fitch rates South Africa one rung above subinvestment grade.

  • FOREX Africa: South African Rand On The Edge Ahead Of S&P’s Rating

    By Kevin Mwanza, 11:06 am

    The South African Rand slipped against major currencies on Monday as pressure piled on Africa’s third largest economy ahead of a possible credit rating downgrade by Standard & Poor’s on Friday, June 3. S&P’s is expected to release its verdict on South Africa later this week, in which it will announce whether it will cut the country’s rating to junk.

  • Blow For South African Banks As Moodys Lowers Outlook To Negative

    Moodys Lowers Outlook To Negative By Dana Sanchez, 1:06 pm

    Ratings agency Moody’s on Friday lowered its outlook for the South African banking system from stable to negative, citing deteriorating operating conditions over the next 18 months. This sent banking shares lower, Reuters reported. “We have expected the lower outlook for a while,” said Graeme Korner, director at fund manager Korner Perspective, which invests in banks. “We think the earnings of the banks will be OK in spite of these concerns because the fact is South African banks are very good value and pay good dividends.”

  • South Africa Downgrade: Rating Agencies’ ‘Black Box’ Should Be Open To Scrutiny

    Rating agencies By Kevin Mwanza, 7:03 am

    Researchers at South Africa’s University of Pretoria want the methods used by global rating agencies like Fitch and Standards & Poor’s (S&P) to be opened up to scrutiny, independent evaluation and validation. According to Conrad Beyers, spokesperson for the group of researchers, the methodology that will be used by rating agencies to determine whether South Africa’s debt will fall into ‘junk status’ this year is a “black box” despite its huge ramifications.

  • Barclays Is Pulling Out Of Africa

    Barclays Africa By Kevin Mwanza, 7:31 am

    UK-based international bank Barclays has said it plans to pull out of Africa by reducing its majority stake in Absa, The Wall Street Journal reported. The bank which owns 62 percent of Barclays Africa, while Absa owns the rest, said its executives had reached a decision to sell some of its shares in the group that operates in several African countries including South Africa, Kenya and Botswana.

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