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TEXT-Fitch affirms South Africa's Industrial Development Corporation at 'AA(zaf)'
January 15, 2013 / 10:07 AM / 5 years ago

TEXT-Fitch affirms South Africa's Industrial Development Corporation at 'AA(zaf)'

(The following statement was released by the rating agency)

Jan 15 - Fitch Ratings has affirmed South Africa-based Industrial Development Corporation’s (IDC) National Long-term rating at ‘AA(zaf)’ and Short-term rating at ‘F1+(zaf)'. The Outlook is Stable.

As IDC is only rated on the national scale, its ratings were not affected by the downgrade of South Africa’s Long-tern foreign currency Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB+’ and Long-term local currency IDR to ‘BBB+’ from ‘A’ on 10 January 2013 (see ‘Fitch Downgrades South Africa to ‘BBB’, Outlook Stable’ available atwww.fitchratings.com).

RATING SENSITIVITIES

The main factors that could lead to a negative rating action are:

- dilution of government oversight

- 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:

- more formalized support from the government, such as an explicit guarantee on all financial liabilities.

IDC is a self-supporting development financial institution whose mandate is to support and develop industrial capacity and promote job creation in South Africa.

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