February 1, 2018 / 6:14 AM / 19 days ago

S&P rating of South Africa's Capitec not hurt by Viceroy report

JOHANNESBURG, Feb 1 (Reuters) - Capitec said its credit rating by S&P Global Ratings had not been affected by a report from Viceroy Research accusing the South African lender of overstating its income and assets.

“To date, the bank has experienced only mild funding outflows and its liquidity remains sound,” Capitec said in a statement on Thursday, quoting the ratings firm’s bulletin.

S&P has rated Capitec BB/B with a stable outlook, which falls within the speculative range.

The U.S. firm Viceroy published a report on Tuesday which said Capitec was a “loan shark with massively understated defaults masquerading as a community microfinance provider”, triggering a brief slump of 25 percent in its shares.

Capitec has dismissed the allegations calling the report “flawed with inaccurate statements”. (Reporting by Tanisha Heiberg; Editing by Himani Sarkar)

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