Company news in brief

SA banks downgraded to junkMoody’s and Fitch have downgraded big South African banks' credit ratings to junk, a move expected after the country's sovereign rating suffered the same fate last week from Moody's - the only agency to consider it investment-grade.The agencies said Standard Bank, Absa, FirstRand, Nedbank and, in the case of Moody's, Investec's fortunes were tied to the deteriorating economy in South Africa, already in trouble prior to the outbreak of coronavirus, and those of the government.Both highlighted the further blow to the economy, which slipped into recession in the final quarter of 2019, of the pandemic and a 21-day nationwide lockdown as the key factor, with banks' expected to see rising bad debts and lower revenues."A secondary driver of today's rating actions is South African banks' high sovereign exposure, mainly in the form of government debt securities held as part of their prudential liquidity requirements, which links their credit profiles to that of the government," Moody's continued.It said the lenders' overall sovereign exposure, including loans to often troubled state-related entities, averaged at 176% of their capital bases. – Nampa/ReutersBTI working on vaccine using tobacco leavesBritish American Tobacco, the maker of Dunhill and Lucky Strike cigarettes, said yesterday its US biotech unit was working on a potential vaccine for COVID-19 using proteins extracted from tobacco leaves.Kentucky BioProcessing (KBP), the unit developing the vaccine, could produce between 1 million and 3 million doses per week starting in June, the company said, with support from government agencies and the right manufacturers.British American Tobacco said KBP, a division of BAT's U.S. unit Reynolds American Inc, would develop the vaccine on a not-for-profit basis.The vaccine, currently undergoing pre-clinical testing, uses a cloned portion of Covid-19's genetic sequence to create an antigen that is then inserted into tobacco plants for reproduction.BAT said it was working with the US Food and Drug Administration on the next steps and was also engaged with UK health authorities to bring its vaccine to clinical studies as soon as possible. – Nampa/ReutersGlencore delays dividend paymentGlencore said on Tuesday it had deferred a decision on its proposed US$2.6 billion dividend pay-out for this year and said there could be material disruption to production due to the coronavirus epidemic.A decision would be made in August on the level of any dividend after considering the impact of the coronavirus on the economy and its business, the London-listed commodity miner and trader said. The decision would coincide with interim results.The proposed cash dividend of 20 US cents per share would be delayed to "strengthen the group’s overall financial position and reflecting that, although none to date, there exists the risk of material production disruption due to Covid-19."Glencore also extended its current credit facilities to protect its capital structure and improve liquidity.The company said on Thursday it halted a number of smaller mines due to government restrictions to curb the spread of the coronavirus but said that its larger operations were not materially impacted.Dior turns its hand to face masksFrench fashion label Christian Dior said on Tuesday one of its workshops had started to produce face masks for workers in supermarkets and other sectors still operating during the coronavirus outbreak, echoing moves by other luxury brands.Dior, which is owned by LVMH, will produce the protective gear in a plant in Brittany, northern France, which normally makes high-end baby clothes and which will be staffed by volunteers.All of the brand's other production sites have closed.Other fashion companies in France and Italy, home to some of the world's biggest brands, have also turned their hand to making face masks or medical blouses, including Kering's Gucci, Prada and Chanel.LVMH is also using some of its perfume factories to make hand sanitiser gel, as are other cosmetics makers. – Nampa/ReutersBarclays halts dividendsBarclays and the British arm of Spain's Santander, said they would suspend dividend payments, saving their capital instead as a buffer against expected losses from the economic fallout from the coronavirus.Barclays said it would not pay any 2020 dividend and also scrapped its planned 2019 pay-out."The bank has a strong capital base, but we think it is right and prudent, for the many businesses and people that we support, to take these steps now," the bank's chairman Nigel Higgins said. – Nampa/ReutersXerox abandons hostile bid for HPUS printer maker Xerox Holdings Corp walked away from its US$35 billion hostile cash-and-stock bid for HP Inc on Tuesday, after the coronavirus outbreak weighed on its campaign to take over the PC and printing equipment manufacturer.Xerox's decision came after it said earlier this month it would postpone meetings with HP shareholders to focus on coping with the coronavirus pandemic."While it is disappointing to take this step, we are prioritising the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations," Xerox said. – Nampa/Reuters

Company news in brief

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Republikein 2026-01-29

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