...Sovereign Worries: Falling commodity prices, faltering GDP growth, weaker currencies, capital outflows, the China slowdown and greater policy risks are to varying degrees putting pressure on sub-Saharan African (SSA) sovereigns and bank credit profiles. Fitch has Negative Outlooks on the sovereign ratings of Nigeria (BB-), Kenya (B+) and Ghana (B) reflecting increasing downside risks. Fitch downgraded South Africa to `BBB-' in December 2015. Negative Banking Sector Outlook: Bank risk has increased due to weaker economic and operating environments. Fitch has a negative sector outlook on SSA banking sectors as it expects bank financial profiles to weaken further in 2016 on lower operating profitability, higher NPLs and increasing pressure on liquidity and capital ratios. Stable Outlooks on Low Ratings: Fitch has Stable Outlooks on the Long-Term IDRs of the SSA banks due to their relatively low ratings, in the `B' range. In our view, ratings at this level, either on support or standalone creditworthiness...
