Share

S&P raises Capitec, African Bank's national rating

Standard and Poor’s has raised African Bank and Capitec's national scale credit rating after revising its mapping table for South Africa and financial institutions, the global ratings agency said on Tuesday.

S&P raised African Bank's rating from zaBBB to zaA-, and Capitec's from zaAA- to zaAA.

The ratings agency kept African Bank’s short term national scale rating at zaA-2.“The ‘B+/B’ global scale rating and outlook of 'stable' previously assigned to the bank remains unchanged,” S&P said in a statement.

For Capitec all other ratings remained unchanged. "The global scale long-term rating remains ‘BB’ with a stable outlook. The global scale short-term rating remains ‘B’ whilst the national scale ratings remains ‘zaA-1+’."

The Reserve Bank in 2014 placed the bad African Bank under curatorship and now owns a 50% stake in African Bank as a result of its rescue and recapitalisation.

The bank was created when the South African Reserve Bank split the “good” customer loans of the old African Bank from the “bad bank” of the failed lender.

In May,  the lender posted a 42% jump in operating profit to R715m, its largest interim profit since its near collapse four years ago.

The bulk of African Bank revenue is generated from loans, and the institution plans to roll out a transnational banking product to the public later this year.

The product is already available to staff members.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.80
+1.1%
Rand - Pound
23.49
+1.3%
Rand - Euro
20.10
+1.5%
Rand - Aus dollar
12.28
+1.0%
Rand - Yen
0.12
+2.8%
Platinum
923.40
-0.2%
Palladium
957.50
-3.3%
Gold
2,336.75
+0.2%
Silver
27.20
-0.9%
Brent Crude
89.01
+1.1%
Top 40
69,358
+1.3%
All Share
75,371
+1.4%
Resource 10
62,363
+0.4%
Industrial 25
103,903
+1.3%
Financial 15
16,161
+2.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders