The ratings agency cut Capitec's financial strength rating to "D" from "D+" late on Friday and downgraded the bank's bank deposit rating by two notches. It also put Capitec on review for further downgrades.
The cuts come after the
Moody's cited "heightened concerns regarding the inherent risks of Capitec's consumer-lending focus", adding that challenges in the unsecured market could weigh on the bank's financial performance.
On the JSE yesterday, Capitec shares ended 2.69 percent weaker than on Friday at R210.20, but off the session's low of R203.04. - Reuters
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