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SARB backs SA banks after S&P ratings cut

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Cape Town - The South African Reserve Bank (SARB) reiterated that South African banks are adequately capitalised to deal with the effects of a cut from Standard & Poor’s (S&P) to a sub-investment grade.

The ratings agency lowered the ratings of seven of commercial banks, which include Nedbank, Absa, Investec and FirstRand to sub-investment grade. This follows the downgrading South Africa’s foreign currency denominated debt to sub-investment grade.

READ: FULL STATEMENT: S&P downgrades SA banks

"The sovereign rating acts as a ceiling and the rating of banks cannot be above that of a sovereign," said the SARB.

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