Banks, MTN and Eskom downgraded to junk

Photo_Web_FitchRatings_130614

Fitch ratings agency on Friday revised the outlook on South Africa to negative from stable. The ratings agency said the outlook revision was partly due a strike at platinum mines.

JOHANNESBURG – Ratings agency Fitch has revised its view of the creditworthiness of five local banks.

It’s also amended its ratings for Eskom and MTN.

This is line with its downgrade of the country's local and foreign currency debt last week.

READ: Fitch downgrades SA to junk status

Absa, FirstRand, Investec, Nedbank and Standard Bank are now rated at BB-plus – or junk status.

The ratings agency says South Africa's banks cannot have a higher sovereign rating than that of the country.