Standard Bank South Africa CEO pushes back against Moody’s credit risk concerns

Standard Bank SA CEO Sim Tshabalala

Speaking at the Africa Unlocked Conference 2025 held in Cape Town, Standard Bank Group CEO Sim Tshabalala dismissed a recent Moody’s report flagging the bank’s exposure to South African government debt as a credit risk. He questioned the accuracy of the data, remarking, “We respectfully wonder what data they were using.”

Moody’s had raised concerns over Standard Bank’s approximately R272 billion exposure—around 13% of its total assets in South Africa—to sovereign debt, suggesting this could link its credit stability closely to the state’s fiscal health. Tshabalala countered that the bank’s exposure is not greater than peers’, and often lower, and that his institution’s analysis diverges significantly from credit agency ratings.

He emphasized that Standard Bank’s internal metrics suggest African economies are consistently undervalued in global credit ratings, sometimes by as many as four notches. Applying this to South Africa alone could elevate its rating to BBB, potentially reducing borrowing costs by nearly $3 billion annually.

Tshabalala also addressed broader concerns around geopolitical and economic volatility, including US trade policy shifts. His remarks reinforce the need for more transparent and Africa-sensitive credit assessments, particularly with the impending creation of an African Union-backed rating agency.