STANDARD BANK GROUP LIMITED - SBKI-Credit Rating Amendment

SBKI-Credit Rating Amendment

Standard Bank Group Limited
Issuer Code: SBKI

The Standard Bank of South Africa Limited
Issuer Code: BISTDB


02 April 2020

Ratings Announcement

Amendment to Standard Bank Group (“SBG”) and The Standard Bank of South Africa Limited
(“SBSA”) credit ratings by Fitch Ratings (“Fitch”) and Moody’s Ratings Agency (“Moody’s”)

Noteholders are hereby advised of the amendment by Fitch and Moody’s to SBG’s and SBSA’s credit
ratings effective on 31 March 2020.

Fitch:

    •    Fitch has downgraded the Long-Term Issuer Default Ratings (IDRs) and Viability Ratings (VRs)
         of SBSA to ‘BB’ and ‘bb’, respectively. The Outlook on the IDRs is Negative.
    •    Fitch has taken similar rating actions on the Long-Term IDRs and VRs of SBG.
    •    National Long-Term Ratings and debt ratings (where applicable) have also been downgraded
         from AA (zaf) to AA-(zaf).
    •    The Outlook on the National Long-Term Ratings is revised to Negative from Stable.
    •    Fitch has increased the notching for Tier 2 issues of SBG to two notches from one from the
         respective VR and National Rating anchor ratings.
    •    Fitch has also widened the notching between the IDR and the long-term debt rating assigned
         to SBG’s and SBSA’s USD4 billion EMTN Programme to one from zero to reflect (under the
         new criteria) below-average recovery prospects because of thin Qualifying Junior Debt buffers.

The rating action by Fitch is driven by the expected negative impact from the coronavirus outbreak on
the bank's operating environment and key financial metrics, notwithstanding uncertainty as to the full
economic and financial market implications.

For commentary on the detailed ratings action taken on SBG and SBSA, together with the other South
African Banks, please refer to the Fitch press release on the below website:
https://www.fitchratings.com

Moody’s:

    •    SBSA's long-term foreign-currency and local-currency issuer ratings to Ba1 from Baa3. The
         outlook remains negative.
    •    SBG's long-term foreign-currency and local-currency issuer ratings to Ba2 from Ba1. The
         outlook remains negative.

The primary driver for Moody’s rating actions is the increasingly difficult operating environment for banks
in South Africa as reflected by the agency’s decision to lower South Africa's Macro Profile score from
'Moderate' to 'Moderate-' in addition to the weakening credit profile of the South African government
given 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.
A detailed commentary on the ratings action taken on SBG and SBSA, together with the other South
African      Banks      may        be        accesses      on     the       below       website:
https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL421844


Johannesburg
Debt Sponsor:
Kea Sape: 011 721 5594

The Standard Bank of South Africa Limited

debtsponsor@standardbank.co.za

Date: 02-04-2020 01:09:00
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