ASA/ABSP - Absa Bank Limited - Rating downgrade of Absa Bank by Moody`s

ASA/ABSP - Absa Bank Limited - Rating downgrade of Absa Bank by Moody`s         
Investors Service                                                               
Absa Bank Limited                                                               
(Incorporated with limited liability in South Africa under registration number  
1986/004794/06)                                                                 
("Absa Bank")                                                                   
Bond Issuer Code: ABMN                                                          
Share Code: ASA                                                                 
Preference Share Code: ABSP                                                     
Rating downgrade of Absa Bank by Moody`s Investors Service ("Moody`s")          
Notice is hereby given that Moody`s has on 22 June 2012 downgraded, to A3 from  
A2, the long-term local-currency deposit and foreign-currency senior unsecured  
debt ratings of Absa Bank.                                                      
The downgrade was triggered by the recent downgrade of the standalone credit    
assessment of Barclays Bank Plc ("Barclays") (which owns 55.5% of Absa Group    
Limited, the holding company of Absa Bank). Moody`s has removed the one notch of
rating uplift from parental support previously incorporated in Absa Bank`s      
deposit and senior debt ratings. Barclays long-term deposit and debt rating was 
recently downgraded to A2 (negative outlook), from Aa3, and its standalone bank 
financial strength ("BFSR") measure was lowered to C-/baa2(stable outlook on the
C-), from C/a3.                                                                 
The outlooks are stable on Absa Bank`s local-currency deposit and foreign-      
currency senior debt rating, which continue to benefit from the banking and     
operational expertise available from the parent bank. Furthermore, Moody`s is   
comfortable that Absa Bank continues to remain a self-sufficient and            
operationally independent entity without any funding dependence from Barclays.  
Ratings affected by downgrade action                                            
The local-currency deposit ratings have been downgraded to A3/P-2(stable        
outlook) from A2/P-1 and the long-term national-scale deposit rating has been   
confirmed at Aa2.za.                                                            
With regards to Absa Bank`s EMTN programme, the provisional foreign-currency    
senior unsecured debt rating has been downgraded to (P)A3 from (P)A2. Any issued
foreign-currency senior unsecured debt has been downgraded to A3 from A2.       
The provisional foreign-currency subordinated and junior subordinated debt      
ratings under its EMTN programme have also been downgraded to (P)Baa2 and       
(P)Baa3, from (P)Baa1 and (P)Baa2 respectively. All ratings have a stable       
outlook.                                                                        
The C- BFSR (stable outlook), mapping to standalone credit assessment of baa1,  
the A3 long-term foreign-currency deposit rating(negative outlook), the P-2     
short-term foreign-currency deposit rating and the P-1.za national-scale short- 
term deposit rating, all remain unaffected.                                     
Johannesburg                                                                    
27 June 2012                                                                    
Debt sponsor                                                                    
Absa Capital                                                                    
(the investment banking division of Absa Bank Limited, affiliated with Barclays)
Date: 27/06/2012 09:15:01 Supplied by www.sharenet.co.za                     
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