DBSA suffers downgrade

Development Bank of Southern Africa’s (DBSA) corporate family ratings (CFR) and long-term foreign-currency issuer ratings have been pulled down from Ba1 to Ba2, with a negative outlook by Moody’s.

The rating agency has downgraded the South Africa-based development financier on concerns that the country’s fiscal pressures may make it difficult for the government to continue providing support to DBSA.

Meanwhile, Moody’s has also lowered DBSA’s long-term national scale issuer ratings to Aa3.za from Aa1.zaa and maintained its baseline credit assessments at ba3.

This comes after Moody’s pulled down South Africa’s long-term foreign-currency and local-currency issuer ratings from Baa3 to Ba1 with a negative outlook, over heavy debt in a low growth environment.

See full issuer details here