Moody's cuts Capitec’s financial strength rating

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Capitec Independent Newspapers Capitec Bank branch. Photo: Matthew Jordaan.

Johannesburg - Ratings agency Moody's cut the financial strength rating of South Africa's Capitec Bank by one notch to D on Friday, citing concerns about its exposure to risky consumer lending.

Moody's said in a statement it had cut Capitec's financial strength rating to D from D+, adding that all of the bank's ratings would be put on review for further downgrades.

Concerns about consumer lending in Africa's most developed economy have increased since the central bank launched a R17 billion rescue of African Bank Investments last week. - Reuters



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