Johannesburg – Fitch Ratings has affirmed the Industrial Development Corporation's (IDC's) national long-term rating at 'AA(zaf)' and Short-term rating at 'F1+(zaf)'. The outlook is stable.
As IDC is only rated on the national scale‚ its ratings were not affected by the downgrade of SA's Long-tern foreign currency Issuer Default Rating (IDR) to 'BBB' from 'BBB+' and Long-term local currency IDR to 'BBB+' from 'A' on 10 January 2013‚ the ratings agency said on Tuesday.
Fitch said the main factors that could lead to a negative rating action are a dilution of government oversight and the dilution of government support if there were material deterioration of the IDC's asset classes.
The main factor that could lead to positive rating action is a more formalised support from the government‚ such as an explicit guarantee on all financial liabilities‚ it said.
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