JOHANNESBURG, March 5 (Reuters) - Credit ratings agencyFitch downgraded South Africa's Barclays Africa Group,citing a lower likelihood of support from the bank's Britishparent as it sells down its stake.
Barclays plc said on Wednesday it would sell its 62percent holding in Johannesburg-listed Barclays Africa down to aminority stake over the next two to three years.
Fitch announced late on Friday that it had downgraded theAfrican unit's foreign currency and local currency long-termissuer default ratios to BBB-, from BBB and BBB+ respectively,saying it sees a limited probability of support from Barclays inthe transition phase up to the point of sale.
"The downgrades reflect Fitch's view that there is a lowersupport propensity from Barclays for Barclays Africa Group andAbsa given the parent's intention to sell its controlling stakein Barclays Africa Group (which fully owns South Africandomestic bank, Absa) and deconsolidate the subsidiary," FitchRatings said in a statement.
The ratings agency added that it considers Barclays AfricaGroup to be of limited strategic importance to Britain'sBarclays and will not be able to fully rely on potentialinstitutional support from the parent. (Reporting by TJ Strydom; Editing by Alexander Smith)
Barclays (BARC)
