The agency downgraded the South African bank’s international deposit ratings to Ba2 from Baa3 and its national scale ratings to Baa1.za from A2.za.
“We’re focusing now on making certain that our investors and our retail people are positive and that they understand that its business as usual for us. We’re positive. Everything in our financial results is looking in line with our budget and we should have fairly good half-year results,” [DATA CPI:Capitec] chief executive, Gerrie Fourie told CNBC Africa.
“What is very positive for us is that the reserve bank has supported us. When we spoke to them on Friday, they immediately reacted and they also disagree. That to us is very positive.”
(READ MORE: Reserve bank disputes Moody’s downgrade of Capitec)
Capitec did however indicate that it is extremely dissatisfied with the extent of the review and its conclusion.
“Capitec Bank feels that the downgrade by Moody’s is a reaction to the situation pertaining to African Bank, which is not applicable to Capitec Bank,” it said.
“Despite assurances from Capitec Bank that our performance is according to plan, we feel Moody’s did not take this into account when assessing the bank. Moody’s was invited to review additional information to be provided by Capitec Bank, but unfortunately declined this opportunity.”
According to Fourie, the company’s financial results, which are expected to be released on 29 September 2014, should be more positive following the conclusion of the strikes.
“The public is probably not that well informed [on] what is the difference between ourselves and African Bank and that’s what we’ve done with our update on Friday, explained that we’ve got a completely different business model [to] African Bank,” he said.
“Our financial results are coming out in September and we’ve said that we’re going to do a trading update on or before the 10th of September. One will have to see how they’re going to approach it. Hopefully after our results, they will come and do a full assessment in October or November and we’ll see what the view is then.”
(READ MORE: Capitec paid Moody’s for a rating)
He added that the downgrade is not expected to have an effect on the bank’s capital-raising initiatives in the short term.
“Our capital adequacy is at 40 per cent on our model so we don’t see that we’re going to need any capital for the next 18 to 24 months, depending on book growth. In the short term it will have very little impact. [In the] long term, if we can’t get Moody’s to upgrade ourselves, it probably will have an impact,” Fourie said.
“For us, our retail deposits are growing quite nicely and we can make use of retail and wholesale to fund our activities.”