Moody's downgrades top banks

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Johannesburg, 19 February 2017 - The Competition Tribunal is taking on 17 local and international banks for allegedly manipulating the currency market. The banks are accused of collusion and price fixing dating back as far as 2007.

JOHANNESBURG - Ratings agency Moody’s has downgraded South Africa's top five banks.

The deposit ratings of Standard Bank, First Rand, ABSA, Nedbank and Investec were downgraded to Baa3 with a negative outlook.

The long-term local- and foreign-currency deposit ratings were previously at Baa2.

READ: Moody’s downgrades SA's rating to Baa3

Despite having strong financial strength, the country’s banks are seen to hold moderate credit risk.

On Friday, the agency downgraded the country’s investment rating by one notch -- keeping it at investment grade, but just above junk status and retaining a negative outlook.

Moody's says the downgrade follows the weakening of the South African government's credit profile.