AFRICAN BANK INVESTMENTS LIMITED - Moodys downgrades African Banks local and global credit ratings

Moody’s downgrades African Bank’s local and global credit ratings

AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL ISIN: ZAE000030060
Preference share code: ABLP ISIN: ZAE000065215
(“ABIL”)
and
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank”)

MOODY’S DOWNGRADES AFRICAN BANK’S LOCAL AND GLOBAL CREDIT RATINGS

ABIL announces that Moody’s Investors Service (“Moody’s” or “the agency”) has, on 29 of May 2014,
downgraded African Bank Limited’s local national scale issuer ratings by one notch to A3.za/P-2.za from
A2.za/P-1.za and its global senior debt and deposit ratings by one notch to Ba1/Not Prime, from Baa3/Prime-
3. African Bank thereby maintains its national scale investment grade rating. In addition, the long term
ratings have been placed on review. The conclusion of this review will likely follow the publication of the
Bank’s trading update for the nine months ending June 2014. African Bank announced a headline loss for
the six months ended March 2014 and this rating action reflects Moody’s assessment of the deterioration in
African Bank’s asset quality.

ABIL stated in its recent interim earnings results announced on the 19th May 2014, that the group has raised
a general provision of R2.5 billion to deal with the higher level of expected non-performing loan (“NPL”)
emergence. The significantly improved quality business written since July 2013, when stricter underwriting
interventions were implemented, is growing in proportion of the total book and is expected to start positively
impacting future financial results. The Bank continues to be adequately capitalized and liquid.

Midrand

30 May 2014

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

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