(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).
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.