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Bank downgrades reflect policy confusion, weak SA leadership - BASA

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Cape Town - The credit rating downgrades of the five largest South African banks late on Monday further emphasise the ongoing policy confusion and weak leadership in our country, according to Cas Coovadia, managing director of the Banking Association of SA (BASA).

He said on Tuesday that, although the banks' downgrades were expected following SA’s recent sovereign rating downgrade, they will lower the country’s creditworthiness and make financing harder and more expensive to source. This will have knock-on effects for all South Africans, especially the poor, in his view.

On Monday, Moody’s downgraded the credit ratings of SA’s top five banks, three development finance institutions, certain City Power and Sanral credit ratings, and 10 regional and local governments.

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