CAPITEC BANK HOLDINGS LIMITED - S&P Global Ratings Bulletin: Capitec Bank Ratings Not Affected By Market Report

S&P Global Ratings Bulletin: Capitec Bank Ratings Not Affected By Market Report

Capitec Bank Holdings Limited
Incorporated in the Republic of South Africa
Registration number 1999/025903/06
Registered bank controlling company
Ordinary Share Code: CPI ISIN Number: ZAE000035861
Preference Share Code: CPIP ISIN Number: ZAE000083838
("Capitec")

Capitec Bank Limited
Incorporated in the Republic of South Africa
Registration No. 1980/003695/06
Company code: BICAP
(“Capitec Bank”)

S&P GLOBAL RATINGS (“S&P”) BULLETIN: CAPITEC BANK RATINGS NOT
AFFECTED BY MARKET REPORT

S&P Global Ratings released the following bulletin late
yesterday afternoon:

“S&P Global Ratings said today that its ratings on South
Africa-based Capitec Bank Ltd (BB/Stable/B) are not affected
by an investment report published by Viceroy Research on Jan.
30, 2018, or by the market’s reaction to the report.

In the report, Viceroy Research requests that the South
African Reserve Bank place Capitec under immediate curatorship
and alleges that the value of Capitec's loan book is
"massively overstated." The market's reaction was significant,
with the bank's share price losing over 20% before recovering
after the South African Reserve Bank released a statement
defending the soundness of the bank's capitalization and
liquidity. To date, the bank has experienced only mild funding
outflows and its liquidity remains sound.

Our ratings on the bank continue to reflect those on South
Africa (foreign currency BB/Stable/B), as well as the bank’s
strong capitalization and conservative reserving, which is
appropriate for high normalized credit losses. We also factor
in the bank’s good earnings stability for a monoline unsecured
consumer lender”.


Stellenbosch
1 February 2018
Sponsor: PSG Capital

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