Cape Town - South Africa's credit rating has now affected the broader financial sector and other related state institutions. Moody's has downgraded to Baa3 (negative outlook) from Baa2 (Rating Under Review outlook), the long-term local- and foreign-currency deposit ratings of the five largest South African banks, insurers and municipalities, the Investors Service said on its website.

The Standard Bank of South Africa Limited, FirstRand Bank Limited, Absa Bank Limited, Nedbank Limited, and Investec Bank Ltd were all downgraded by the ratings agency on Monday.

Moody's also downgraded Standard Bank Group Limited's long-term local- and foreign-currency issuer ratings to Ba1 from Baa3, and affirmed all banks' national scale ratings.

This rating action concludes the review initiated on April 4 and follows the weakening of the South African government's credit profile, as captured by Moody's similar rating action on the sovereign rating on June 9, Moody's said on its website.