The Financial Services Board (FSB) has announced that the Registrar of Credit Rating Agencies has cancelled Fitch Southern Africa's registration as a credit rating agency. The cancellation request came from Fitch itself.
According to the FSB, this means that credit ratings from Fitch Southern Africa, along with any other Fitch entity, can no longer be used for regulatory purposes in South Africa. However, to maintain financial stability, ratings issued by Fitch will stay valid for the next four months.
- Read an article we published previously on why it is important to listen to rating agencies.
A statement on the Fitch Ratings website said:
"The decision reflects Fitch's desire to maintain an optimal level of analytical resources in each geographic location in which it operates Fitch is in active discussions with the FSB on how best to achieve this while respecting South African legislation."
Despite its de-registration, Fitch has said it still intends to publish a review of South Africa's sovereign rating later this year, in December.
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