ABSA GROUP LIMITED - ABGI/ BIABS - Moody's Downgrades Credit Ratings following Downgrade on the South African Sovereign

ABGI/ BIABS - Moody's Downgrades Credit Ratings following Downgrade on the South African Sovereign

ABSA GROUP LIMITED
(Incorporated with limited liability in South Africa under registration number 1986/003934/06)
Bond Issuer Code:
Bond Issuer Code: ABGI
(“ABSA Group” or “ABGI”)

ABSA BANK LIMITED
(Incorporated with limited liability in South Africa under registration number 1986/004794/06)
Bond Issuer Code: BIABS
(“Absa Bank”)

ABSA GROUP LIMITED AND ABSA BANK LIMITED: MOODY’S DOWNGRADES CREDIT RATINGS
FOLLOWING DOWNGRADE ON THE SOUTH AFRICAN SOVEREIGN

Notice is hereby given in terms of the Debt Listings Requirements of the JSE Limited that Moody’s
Investor Services (“Moody’s”) has on 31 March 2020 lowered the long-term local currency and foreign
currency deposit ratings of Absa Bank Limited to Ba1 from Baa3, and the long-term issuer ratings of Absa
Group Limited to Ba2 from Ba1.The outlook on both ratings remains negative.

These rating actions follow Moody’s decision to downgrade the South African government’s local and
foreign currency issuer rating to Ba1 from Baa3, with a negative outlook, on 27 March 2020. Moody’s
does not rate financial institutions above the credit profile of the government.

The above ratings actions do not reflect any fundamental change in the credit quality of the Absa Group
and Absa Bank Limited.

For additional details on the rationale of the ratings action please see the press release by Moody’s on 31
March 2020 titled “Rating Action: Moody’s downgrades the ratings of five South African banks following
downgrade on the South African sovereign. The outlook is negative”

Summary of credit rating change:

                                             To                    From
 Absa Group Limited
 Long-term issuer rating                     Ba2                   Ba1

 Subordinated Tier II (Foreign)              Ba3                   Ba2

 Absa Bank Limited
 Long-term local currency                    Ba1                   Baa3

 Long-term foreign currency                  Ba1                   Baa3

 Long-term counterparty risk rating          Baa3                  Baa2

 Short-term counterparty risk rating         P-3                   P-2

Johannesburg

2 April 2020

Debt sponsor to Absa Bank Limited:
Corporate and Investment Bank, a division of Absa Bank Limited

Date: 02-04-2020 12:00:00
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