The theme is foreigners don’t understand. Using this defence mechanism, it is easy to shrug off Moody’s downgrade of South Africa’s big four banks: Standard, FirstRand, Nedbank and Absa. The agency, which downgraded Capitec last week, was reacting to the limited bailout of African Bank by the SA Reserve Bank (SARB).
The SARB disagreed with Moody’s initial downgrade of Capitec, saying Capitec’s business model was different from African Bank’s.
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