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NED/NBKP - Nedbank Group/Nedbank - Fitch Places Nedbank on rating watch positive NEDBANK GROUP LIMITED (Incorporated in the Republic of South Africa) Registration number: 1966/010630/06 JSE share code: NED NSX share code: NBK ISIN: ZAE000004875 NEDBANK LIMITED (Incorporated in the Republic of South Africa) Registration number: 1951/000009/06 JSE share code: NBKP ISIN: ZAE000043667 FITCH PLACES NEDBANK ON RATING WATCH POSITIVE ON HSBC`S PROPOSED BID Fitch Ratings has today placed South Africa-based Nedbank Group Limited`s (Nedbank Group) and Nedbank Limited`s (Nedbank) Long-term Issuer Default Ratings (IDRs), Short-term IDRs, Support and National Long-term ratings on Rating Watch Positive (RWP) respectively. Fitch has simultaneously placed Nedbank`s rated issues on RWP and affirmed both entities` Individual Ratings. A full rating breakdown is provided at the end of this comment. The agency has additionally placed the Long-term National and Support ratings of Nedbank`s wholly owned subsidiary - Imperial Bank Limited (Imperial Bank) - on RWP. Imperial Bank`s rated issue has also been placed on RWP. The rating actions follow yesterday`s announcement that HSBC Holdings PLC (HSBC) has made a proposal to Old Mutual Plc that could result in HSBC acquiring a controlling stake in Nedbank Group. HSBC`s ratings (`AA`/Outlook Stable) are unaffected by the potential transaction. "HSBC`s possible acquisition of the Nedbank Group and its integration into the HSBC international banking network should serve to strengthen and expand Nedbank Group`s position in the South African banking sector," says Anthony Walker, Senior Director in Fitch`s Financial Institutions team. "At the same time, the deal should support Nedbank`s strategy of growing its African franchise." The rating watches will be resolved if a deal is concluded and clarification on the extent of HSBC`s potential ownership and levels of support has been determined by Fitch. Fitch notes that the making of a binding offer by HSBC is subject to a number of pre-conditions, which includes due diligence of the Nedbank Group by HSBC and a number of regulatory and other approvals. In order to satisfy these pre-conditions, a period of exclusivity has been granted by Old Mutual Group to HSBC. Nedbank Group is South Africa`s fourth-largest banking group. The group is currently 52.2%-owned by Old Mutual Life Assurance Company (South Africa) Limited and its associate companies. Old Mutual Life Assurance Company (South Africa) Limited`s ultimate holding company is Old Mutual Plc. The rating actions are as follows: Nedbank Group: Long-term foreign currency IDR: `BBB`; placed on RWP Short-term foreign currency IDR: `F2`; placed on RWP Long-term local currency IDR: `BBB`; placed on RWP Individual Rating: affirmed at `C` Support Rating: `2`; placed on RWP National Long-term Rating: `AA-(zaf)`; placed on RWP National Short-term Rating: affirmed at `F1+(zaf)` Nedbank Limited: Long-term foreign currency IDR: `BBB`; placed on RWP Short-term foreign currency IDR: `F2`; placed on RWP Long-term local currency IDR: `BBB`; placed on RWP Individual Rating: affirmed at `C`; Support Rating: `2`; placed on RWP National Long-term Rating: `AA-(zaf)`; placed on RWP National Short-term Rating: affirmed at `F1+(zaf)` Unsubordinated floating rate-notes (EUR75m): `BBB`; placed on RWP Subordinated lower Tier 2 floating rate notes (USD100m): `BBB-`; placed on RWP Imperial Bank Limited: Support Rating: `2`; placed on RWP National Long-term Rating: `AA-(zaf)`; placed on RWP National Short-term Rating: affirmed at `F1+(zaf)` Subordinated unsecured callable notes (ZAR500m): `A+(zaf)`; placed on RWP Additional information is available at www.fitchratings.com. Sandton 24 August 2010 Sponsors to Nedbank Group in South Africa: Merrill Lynch South Africa (Pty) Limited Nedbank Capital Sponsor to Nedbank Group in Namibia: Old Mutual Investment Services (Namibia) (Pty) Ltd Sponsors to Nedbank Limited: Investec Bank Limited Nedbank Capital Date: 24/08/2010 15:13:03 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
