Fitch downgrades SAPPI Southern Africa to 'A-(ZAF)'; Outlook Stable - SSA01-06 Sappi Southern Africa Proprietary Limited (Incorporated in the Republic of South Africa) Registration number 1951/003180/06 FITCH DOWNGRADES SAPPI SOUTHERN AFRICA TO 'A-(ZAF)'; OUTLOOK STABLE Fitch Ratings has downgraded Sappi Southern Africa Ltd's (Sappi SA) National Long-term rating and senior unsecured issue rating to 'A- (zaf)' from 'A+(zaf)'. Fitch has affirmed the Short-term rating at F1(zaf). The Outlook on the National Long-term rating is Stable. Fitch reported that the downgrade reflects a review of the linkage between Sappi SA and the weaker credit profile of its parent, Sappi Ltd which weighs on Sappi SA's ratings. This is in line with Fitch's revised parent-subsidiary methodology and therefore a technical adjustment and not a reflection of the credit strength of the Sappi SA business. Sappi Southern Africa has not changed the way it does business and will continue to pursue its stated business objectives as evidenced in all investor communications. As stated in our first financial quarter results release, our financial year 2014 will show improved profitability when compared to 2013. Going forward, we expect each quarter to be better than the equivalent quarter a year ago. The Stable Outlook in the Fitch rating reflects the expectations that Sappi SA and Sappi Ltd's key credit metrics will not materially change in the next couple of years. Date 20TH February 2014 Sponsor: Nedbank Capital, a division of Nedbank Limited (“Nedbank”) Date: 20/02/2014 03:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.