FITCH Ratings has affirmed the Industrial Development Corporation's (IDC) national long-term rating at AA(zaf) and short-term rating at F1+(zaf) – a stable outlook.
As the IDC is only rated on the national scale‚ its ratings were not affected by the downgrade of South Africa's long-term foreign currency issuer default rating (IDR) to BBB from BBB+, and long-term local currency IDR to BBB+ from A last Thursday‚ the ratings agency said yesterday.
Fitch said the main factors that could lead to a negative rating action are a dilution of government oversight and the dilution of government support if there were material deterioration of IDC's asset classes.
The main factor that could lead to positive rating action is a more formalised support from the government‚ such as an explicit guarantee on all financial liabilities‚ it said. – I-Net Bridge