OREANDA-NEWS. After recent constructive and healthy discussions with the Financial Services Board (FSB) in South Africa, Fitch Ratings has decided its position in South Africa as it concludes discussions with the FSB.

As announced on September 4, 2015, Fitch Ratings has decided to withdraw the registration with the FSB of its South African subsidiary, Fitch Southern Africa (Pty) Limited (Fitch SA). Consequently, and as communicated by the FSB, the deregistration means that ratings issued by any Fitch entity have no regulatory status in South Africa with two exceptions, as below. Furthermore, Fitch is unable to engage in rating agency activity within South Africa, again with the same exceptions.

The FSB announced on 04 November 2015 that it had granted Fitch Ratings Limited a two-year exemption from registration under the Credit Rating Services Act. The exemption is for the provision of Sovereign Ratings for the Republic of South Africa and ratings for state-owned companies. The exemption is valid to 31 December 2017. Thus, Fitch's ratings of the Republic of South Africa and these state-owned companies can be used for regulatory purposes. Fitch will continue to rate the Republic of South Africa (and these companies), with the next sovereign review scheduled for 04 December 2015.

In addition, the FSB has granted extensions to individual issuers to allow ratings with respect to such issuer / issuance to be used for regulatory purposes for a specified period of time (and for Fitch to continue the related rating activities in South Africa). Please contact the relevant issuer or the FSB for more information.

Fitch intends to maintain its current product offerings for South African issuers, including public and private ratings, national ratings, credit opinions and rating assessment services. However, ratings coverage for all South African issuers will be from overseas locations and using analysts located outside of South Africa.

Fitch remains committed to providing transparent and forward looking credit opinions for issuers and investors across the African continent and continues to expand its coverage in Africa where it currently has ratings in 23 countries.