THE LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA - LBK-Credit Rating Action

LBK-Credit Rating Action

Sens Announcement

The Land and Agricultural Development Bank of South Africa
(JSE Code: BILB)
(“the Land Bank”)


Land and Agricultural Development Bank of South Africa: Moody’s rating update

On 25 July 2019, Moody's Investors Service, ("Moody's") affirmed the Land and Agricultural
Development Bank of South Africa’s ("Land Bank") issuer ratings at Baa3/Prime-3 and its national-scale
issuer ratings (NSR) at Aa1.za/P-1.za. The issuer outlook is negative.

The affirmation of Land Bank’s ratings primarily reflects its government ownership and Moody’s
assumptions of a high probability of government support in case of need. Operating conditions remain
challenging, including developments around South Africa’s Land Reforms. Poor implementation could
result in (1) loss of investor confidence; (2) increase in problem loans; and (3) the drying up of funding
sources, as ZAR9 billion of Land Bank’s debt include a market clause on “expropriation” as an Event of
Default.

The full credit opinion is available on its website, www.moodys.com.


List of affected ratings

Affirmations:
- LT Issuer Ratings (Local & Foreign Currency), affirmed Baa3
- ST Issuer Rating (Local & Foreign Currency), affirmed P-3
- NSR LT Issuer Rating, affirmed Aa1.za
- NSR ST Issuer Rating, affirmed P-1.za
The issuer outlook is negative


26 July 2019

Enquiries
Land and Agricultural Development Bank of South Africa
Konehali Gugushe, Acting Chief Executive Officer
Yatheen Ramrup, Acting Chief Financial Officer
Rebecca Phalatse, General Manager: Marketing and Communications – Tel: 012 686 0921

Date: 26/07/2019 12:29:00
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