THE LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA - Land Bank-Rating Affirmation

Land Bank-Rating Affirmation

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


Land and Agricultural Development Bank of South Africa: Rating action – Moody’s affirms
Baa3 rating; changes outlook to negative from stable

On 28 February 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, and changed the issuer level outlook to negative from stable.

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. The decision to change the
outlook to negative is predominantly driven by pressures on Land Bank’s standalone assessment,
stemming from (1) declining capital buffers that will challenge its ability to meet some loan covenants
while fulfilling its developmental mandate and related loan growth targets; and (2) downside risks
regarding the impact of the upcoming Land Reforms.

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, previously Stable debt level outlook
     withdrawn
- ST Issuer Rating (Local & Foreign Currency), affirmed P-3
- NSR LT Issuer Rating, affirmed Aa1.za
- NSR ST Issuer Rating, affirmed P-1.za

Outlook Action:
Outlook, changed to Negative from Stable




28 February 2019

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

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