THE REPUBLIC OF NAMIBIA - THRNI - Notification of a Change to the Credit Ratings of the Issuer

THRNI - Notification of a Change to the Credit Ratings of the Issuer

The Republic of Namibia
(Incorporated in the Republic of Namibia)
(Registration No. 1929/001225/06)
Company code: THRNI
(“Namibia” or “the Issuer”)


NOTIFICATION OF A CHANGE TO THE CREDIT RATINGS OF THE ISSUER

Bondholders are advised that the credit ratings assigned to the Issuer and its notes by Fitch Ratings
(“Fitch”) and Moody’s Investors Service (“Moody’s”) were downgraded on 1 October 2019 and 6
December 2019 respectively, as further detailed below:

 Rating Agency     Type of Rating                                             From       To
 Fitch Ratings     Long-Term Foreign-Currency Issuer Default Rating           BB+        BB
                   Long-Term Local-Currency Issuer Default Rating             BB+        BB
                   Country Ceiling                                            BBB-       BB+
                   Long-term senior unsecured foreign-currency bonds          BB+        BB
                   Long-term senior unsecured local-currency bonds            BB+        BB
                   National Long-Term Rating (South African Scale)            AA+(zaf)   AA-(zaf)
                   National Rating on Namibian bonds                          AA+(zaf)   AA-(zaf)

 Moody’s Investors Long-term local currency bond and bank deposit             Baa1       A2
 Service           ceilings
                   Long-term foreign currency bank deposit ceiling            Ba3        Ba2
                   Long-term foreign-currency bond ceiling                    Baa3       Baa2
                   Long term issuer rating                                    Ba1        Ba2
                   Senior unsecured rating                                    Ba1        Ba2

The outlook has been accorded as Stable by Fitch and by Moody’s.

The rationale for the downgrade of the above-mentioned ratings by Fitch is due to Namibia's weak
growth performance and Fitch’s downward assessment of growth prospects, which has adverse
implications for Namibia’s ability to stabilize the public debt trajectory. Similarly, Moody’s
downgraded Namibia based on increasing government debt despite fiscal consolidation, coupled with
weaker medium-term growth prospects.


10 December 2019

Debt Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 10-12-2019 01:30:00
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