{"id":8954,"date":"2012-03-15T15:13:00","date_gmt":"2012-03-15T13:13:00","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/text-fitchafrican-soes-ratings-closely-linked-to-sovereign-ratings\/"},"modified":"2012-03-15T15:13:00","modified_gmt":"2012-03-15T13:13:00","slug":"text-fitchafrican-soes-ratings-closely-linked-to-sovereign-ratings","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/text-fitchafrican-soes-ratings-closely-linked-to-sovereign-ratings\/","title":{"rendered":"TEXT-Fitch:African SOEs’ ratings closely linked to sovereign ratings"},"content":{"rendered":"

\t\t<\/span><\/p>\n

(The following statement was released by the rating agency)<\/span><\/p>\n

<\/span><\/p>\n

March 15 – Fitch Ratings says in a new report that state support
\nis largely incorporated into African corporate ratings. The agency gives credit
\nto most African rated state-owned enterprises (SOEs) for the support provided by
\ntheir respective states.<\/p>\n

<\/span><\/p>\n

Fitch’s approach to rating corporate SOEs follows its “Parent and Subsidiary
\nRating Linkage” criteria, where the legal, strategic and operational links are
\nanalysed to assess the degree of linkage between the parent, i.e. the state and
\nits subsidiary and the extent to which the respective ratings should be
\ncorrelated.<\/p>\n

<\/span><\/p>\n

Fitch’s SOEs portfolio in Africa includes 12 corporate entities spread across
\nthree countries: South Africa (‘BBB+’\/Negative), Namibia (‘BBB-‘\/Stable) and
\nTunisia (‘BBB-‘\/Negative). Of these, 11 are fully-state owned and their ratings
\nare closely linked to their respective states, albeit with different degrees of
\nnotching. The notching across the portfolio varies from 0 to 3 notches. The
\nequalisation of SOEs ratings to the state’s ratings is applied to only one-sixth
\nof African SOEs rated by Fitch.<\/p>\n

<\/span><\/p>\n

The report focuses on National Scale ratings, which for are essentially impacted
\nby the level of their respective states’ support. The standalone credit profile
\nremains as important and significant business or credit deterioration may
\npressure the ratings in the absence of state support and hence widen the
\nnotching applied. Although movements in a sovereign’s international rating do
\nnot automatically impact SOEs National Ratings, sovereign rating pressure poses
\nthe risk of weakening or discontinued state support.<\/p>\n

<\/span><\/p>\n

The full report, entitled “Sovereign Ownership and Implications on Corporate Ratings in
\nAfrica” is available at www.fitchratings.com.<\/p>\n

<\/span><\/p>\n

Link to Fitch Ratings’ Report: Sovereign Ownership and Implications on Corporate Ratings in
\nAfrica<\/p>\n

<\/span><\/p>\n

here<\/a>
\n<\/span>\n <\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

(The following statement was released by the rating agency) March 15 – Fitch Ratings says in a new report that state support is largely incorporated into African corporate ratings. The agency gives credit to most African rated state-owned enterprises (SOEs) for the support provided by their respective states. Fitch’s approach to rating corporate SOEs follows […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-8954","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=8954"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8954\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=8954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=8954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=8954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}