STANDARD BANK OF SOUTH AFRICA LD - The Standard Bank of South Africa Limited - Rating downgrade by Fitch Ratings Agency

The Standard Bank of South Africa Limited - Rating downgrade by Fitch Ratings Agency

THE STANDARD BANK OF SOUTH AFRICA LIMITED (REGISTRATION NUMBER
1962/000738/06) - Rating downgrade of The Standard Bank of
South Africa Limited (“SBSA”) by Fitch Ratings Agency (“Fitch")

IN TERMS OF SECTION 4.25 OF THE JSE DEBT LISTING REQUIREMENTS,
NOTICE IS GIVEN TO ALL HOLDERS OF NOTES: SBS, SBK, SBN, SBR,
ETN series, SSN series and CLN series (all JSE listed bonds
issued in terms of The Standard Bank of South Africa Limited?s
Domestic Medium Term Note Programme and Structured Note
Programme (formerly the Credit Linked Note Programme))

In terms of section 4.25 of the JSE Debt Listing Requirements,
notice is hereby given that Fitch has on 15 January 2013
downgraded the Viability Rating (“VR”) of SBSA by one-notch
following the one-notch downgrade of the South African
Sovereign's Foreign Currency IDR to 'BBB' on 10 January 2013.

Fitch describes the downgrade of the bank's VR as reflective of
the bank's concentration to South Africa, a high proportion of
liquid assets invested in government securities and a weakening
operating environment as indicated by the downgrade of the
sovereign rating. The sovereign rating is now effectively
acting as a cap on the South African banks' VRs at this rating
level because of their strong links with South Africa.

National ratings reflect the creditworthiness of an issuer
relative to the best credit in the country. Because the
downgrade of the local currency issuer default rating is driven
by   the  weakening operating  environment, their  relative
creditworthiness has not weakened and so the National Ratings
have been affirmed.

The Outlook on SBSA is Stable. In the longer term, the VR of
this entity could be sensitive to a material weakening of asset
quality and long-term earnings potential in an uncertain
economic environment and/or a reduction in capital.


Summary of ratings affected by downgrade action:
Standard Bank of South Africa Limited:
Long-term foreign currency IDR: downgraded to 'BBB' from
'BBB+'; Outlook Stable
Long-term local currency IDR: downgraded to 'BBB' from 'BBB+';
Outlook Stable
Short-term foreign currency IDR: downgraded to 'F3' from 'F2'
Viability Rating: downgraded to 'bbb' from 'bbb+'
Support Rating: downgraded to '3' from '2'
Support Rating Floor: downgraded to 'BB+' from 'BBB-'
National Long-term rating: affirmed at 'AA(zaf)'; Outlook
Stable
National Short-term rating: affirmed at 'F1+(zaf)'
Senior unsecured debt: Long-term foreign currency rating
downgraded to 'BBB' from 'BBB+';
Short-term foreign currency downgraded to 'F3' from 'F2'

For commentary on the detailed ratings action taken on SBSA
together with the other South African Banks, please refer to
the Fitch press release on their website:
http://www.fitchratings.com/creditdesk/press_releases/detail.cf
m?pr_id=779630

Johannesburg
16 January 2013

For further information please contact:
Reshika Harilall - Group Ratings Management
Tel: +27 11 631 2144
Email: Reshika.Harilall@standardbank.co.za

Or

Ann Hunter – Head: Strategic Funding
Tel: +21 11 378 8206
Email: Ann.Hunter@standardbank.co.za

Debt Sponsor – The Standard Bank of South Africa Limited

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