THE STANDARD BANK OF SA LTD - Ratings of The Standard Bank of South Africa Limited (SBSA) revised by Moodys Investor Services

Ratings of The Standard Bank of South Africa Limited (“SBSA”) revised by Moody’s Investor Services

THE STANDARD BANK OF SOUTH AFRICA LIMITED 
(REGISTRATION NUMBER 1962/000738/06) - Ratings of The Standard Bank of South Africa Limited (“SBSA”) revised
by Moody’s Investor Services (“Moody’s")

IN TERMS OF SECTION 4.25 OF THE JSE DEBT LISTING REQUIREMENTS, NOTICE
IS GIVEN TO ALL HOLDERS OF NOTES: SBS, SBK, SBN, SBC, SBAG1, SBAS1,
SBAPL1, SBAPD1, SBAE, SBACRN, SBAWHT, SBACOP, SBAOIL, SBACI, 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
Moody’s on 10 November 2014 downgraded by one notch to Baa2 (stable) from Baa1 (on
review for downgrade) the long-term deposit and senior debt ratings of SBSA.
Moody’s describes the rating action as driven primarily by the weakening of the South
African government's credit profile, as captured by Moody's downgrade of South Africa's
bond rating to Baa2 (stable) from Baa1 (negative) on 6 November 2014, combined with the
bank’s sizable holdings of sovereign debt securities, which links its creditworthiness to that
of the national government. In view of the correlation between sovereign and bank credit
risk, the bank’s ratings are constrained by the rating of the government. The rating action
is also driven to a lesser extent by the challenges the bank faces in view of weaker
economic growth in South Africa, particularly in the context of consumer affordability
pressures and still-high consumer indebtedness that will likely lead to increased credit
risks and higher loan impairments for the bank.

The stable outlook assigned to the bank’s deposit ratings mainly reflects the stable outlook
on the sovereign rating, and the rating agency’s views that the bank’s lower Baa2 rating
appropriately captures the pressures from economic headwinds, particularly in light of the
bank’s capital buffers.

The standalone bank financial strength rating (BFSR) of C- was affirmed, although the
equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1. The BFSR
has a stable outlook.

Summary of ratings affected by ratings action:
Standard Bank of South Africa Limited:
Long-term foreign currency deposit rating: downgraded to ‘Baa2’; Outlook revised to
Stable
Long-term local currency deposit rating: downgraded to ‘Baa2’; Outlook revised to Stable
Short-term foreign currency deposit rating: affirmed at ‘P-2’
Short-term local currency deposit rating: affirmed at ‘P-2’
National-scale long-term deposit rating: downgraded to ‘A1.za’; Outlook Stable
National-scale short-term deposit rating: affirmed at ‘P1.za’
Senior debt rating: Provisional foreign currency rating downgraded to ‘(P)Baa2’

For commentary on the detailed ratings action taken on SBSA together with the other
South African Banks, please refer to the Moody’s press release on their website:
https://www.moodys.com/research/Moodys-downgrades-five-South-African-banks-deposit-
ratings-to-Baa2--PR_311945

SBSA’s capital ratios at 30 June 2014 were 12.2% on a tier 1 basis and 15.3% on a total
capital adequacy basis. Capital ratios are in excess of regulatory and other internal
requirements.


Johannesburg
11 November 2014


For further information please contact:
David Kinsey – Head: Investor Relations
Tel: +27 11 631 3931
Email: David.Kinsey@standardbank.co.za
Or
Tara Barron – Investor Relations
Tel: +27 11 631 3314
Email: Tara.Barron@standardbank.co.za
Or
Ann Hunter – Head: Strategic Funding
Tel: +21 11 415 4194
Email: Ann.Hunter@standardbank.co.za


Debt Sponsor – The Standard Bank of South Africa Limited

Date: 11/11/2014 08:11:00 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.