The agency affirmed the lenders’ long term issuer default rating(IDR) at ‘BB-‘
This downgrade follows similar action against the lender’s parent company South African-based Standard Bank Group Limited to BB/Negative from BB+ Negative.
Ratings are calculated on a scale of 11 predictors, with Fitch relying on independent auditors, attorneys and other experts to produce IDRs.
The rating agency views that the Kenyan business should be one notch below Standard Bank Group’s if country risks allowed.
Fitch views the Kenyan subsidiary as strategically important to the Group’s Pan African expansion strategy. Standard Bank Group has a 69 per cent indirect shareholding in the bank.
Considered the largest economy in East Africa, Kenya offers an important growth opportunity and a market for the Standard Bank Group.
SBG has high-level connections with the Kenyan business, including its participation in the management of SBK, use of similar products, risk policies and processes as well as systems and branding.