Fitch rating agency leaves South Africa
It obtained the cancellation of its operating licence in the country.Fitch Ratings is officially withdrawing from South Africa after obtaining the cancellation of its operating licence in the country.
"After careful consideration, Fitch concluded that given the limited scale of Fitch Southern Africa’s activities, the increased operational burden and financial cost of complying with both EU and South African rating agency regulations, it was no longer commercially viable to maintain a locally registered subsidiary," the agency said in a statement.
The withdrawal comes less than three years after Fitch left Tunisia.
Although all agencies are increasingly
rating countries thanks to the popularity of African sovereign bonds in recent years,
too few mainland companies wish to be rated, mainly due to the fact that financial markets are rarely used to source financing, according to newspaper Jeune Afrique.
In addition, they face competition in this segment from local players like Wara or Bloomfield in West Africa and Global Credit Ratings in Southern Africa.
However, Moody's and Standard & Poor's have both declared they do not intend to leave South Africa.