Subordinate MTN, Downgraded to (P)Baa1 from (P)A3; Placed Under Review for further
DowngradeIssuer Rating (Local Currency), Downgraded to A3 from A1; Placed Under Review for further
DowngradeHowever, Geoffrey Mwau, director-general of budget, fiscal and economic affairs at the Treasury, disputed the sovereign
downgrade saying it did not reflect the country's fundamentals.He said that the last fiscal year marked by difficulties, including drought and two elections, had occasioned huge one-off costs.
Furthermore, high exposure to government debt securities by banks in South Africa adds further risk, added the agency, a risk which has had an increased impact on ratings following the sovereign
downgrade.
The ratings agency said that the
downgrades reflect Greece's weaker economic prospects.
Fitch officials attributed the
downgrade of the former to the bank's policy of relying too heavily on "the expectation that the Egyptian pound will be continue to be subsidised by the government if need be."
But with council spending so dependent on the Government it was inevitable that a
downgrade of the national rating would immediately be reflected locally.
The outlook for all five banks is "negative" in line with that of the sovereign, Fitch said, noting that any further
downgrade of Portugal's rating would trigger a further
downgrade of the long-term IDRs and SRFs of CGD, BCP and BPI.
Moody's said the primary driver underlying the rating
downgrades of these three banks is the reduced ability of the country to support its large banking system, which has an asset base equivalent to six times the country's GDP.
The domestic banks are National Bank of Bahrain (NBB, A3 review for
downgrade; C-/Baa1 review for
downgrade), BBK (A3 review for
downgrade; C-/Baa2 review for
downgrade), BMI Bank (Baa3 review for
downgrade; D/Ba2 review for
downgrade), Bahrain Islamic Bank (BIsB, Baa2 review for
downgrade; D/Ba2, review for
downgrade).
A federal judge has dismissed a year-old lawsuit against Microsoft over alleged antitrust violations for the "
downgrade" rules it set for Windows Vista and XP.<p>The order issued by U.S.