Fitch Ratings has downgraded Bimputh Finance PLC’s National Long-Term Rating to ‘CC(lka)’ from ‘B-(lka)’. The rating has been removed from Rating Watch Negative.
The downgrade reflects Fitch’s view that Bimputh’s liquidity and refinancing risk has risen significantly, driven by a persistent decline in asset quality, while it faces further delays in restoring its regulatory capital position, which is exacerbated by losses.
Fitch believes that Bimputh’s liquidity position is highly uncertain and it may be dependent on lender forbearance to continue its operations.
Bimputh’s financial position continued to deteriorate significantly after Fitch downgraded the rating in June 2021.
‘CC’ National Long-Term Ratings denote the level of default risk is among the highest relative to other issuers or obligations in the same country or monetary union.