AFRICAN BANK INVESTMENTS LIMITED - Moody's extends review period for downgrade of African Bank's credit ratings

Moody's extends review period for downgrade of African Bank's 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" or "the Bank")

MOODY'S EXTENDS REVIEW PERIOD FOR DOWNGRADE OF AFRICAN BANK'S CREDIT RATINGS

ABIL announces that Moody's Investors Service ("Moody's" or "the agency") has, on 25 November 2014,
extended the review period for downgrade of African Bank's Caa2 global scale long-term deposit and senior
unsecured ratings and Caa2.za national scale long-term issuer ratings, initiated on 12 August 2014.

Moody's decision to extend the rating review process is driven by the fact that South African Reserve Bank's
(SARB) restructuring plan still remains in progress. In addition, the Bank's holding company announced that it
will delay the publication of its final results for the financial year ending September 2014, because of
accounting and audit complexities following the deconsolidation of its retail furniture subsidiary, subsequent
to its business rescue, and African Bank, following its curatorship.

African Bank's current ratings capture the implied losses of 10% that SARB's restructuring plan imposes on
both senior debt and wholesale deposits, as well as the possible suspension of interest payments on these
obligations (although interest will accrue). The review for downgrade continues to capture the implementation
risks of SARB's restructuring plan for the Bank, in conjunction with the risk of higher-than-anticipated losses
that depositors and bondholders could incur.

On behalf of the Board of ABIL and the Curator of the Bank
Midrand
26 November 2014

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

Footnote : T Winterboer was appointed as curator of African Bank Limited on 10 August 2014 by the Minister
of Finance of the Republic of South Africa and pursuant to the Banks Act No. 94 of 1990 (as amended) to
manage the affairs of African Bank Limited subject to the supervision of the Registrar. Please note that Mr
Winterboer acts in the aforesaid capacity.

Date: 26/11/2014 01:51:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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