Barclays buy may cause Absa upgrade
May 12, 2005
By Sherilee Bridge-David
International rating agency Fitch Ratings said last night that Absa and Absa Bank`s long- and short-term foreign and local currency ratings might be upgraded by a maximum two notches to levels above the sovereign ratings for the Republic of South Africa if Barclays` acquisition of a controlling stake was completed on published terms.
`This is the first time that any South Africa-based institution will have been rated above the rating of South Africa by Fitch,` the agency said.
Until the R33 billion transaction is completed, Fitch said it would keep Absa Group and Absa Bank ratings on Rating Watch Positive.
Fitch expects to resolve the Watch by the end of July unless the transaction does not happen or if its terms are modified.
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