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DEVELOPMENT BANK OF SOUTHERN AFRICA - Rating Action

Release Date: 12/04/2017 17:40
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Rating Action

DEVELOPMENT BANK OF SOUTHERN AFRICA LIMITED

Instrument Code: BIDBS

Rating Action by S&P Global Ratings


On the 3 April 2017, S&P Global Ratings (“S&P” or “the agency”) lowered
South Africa’s foreign currency sovereign ratings from ‘BBB-/A-3’ to
‘BB+/B’ and its local currency sovereign rate from ‘BBB/A-2 to BBB-/A-
3’.

In accordance with 4.26 of the JSE Debt Listings Requirements,
noteholders are advised that S&P has accordingly revised the
Development Bank of Southern Africa Limited’s (“DBSA” or “the issuer”)
foreign currency credit ratings has been lowered to ‘BB+/B’ from ‘BBB-
/A-3’ and its local currency issuer credit ratings to ‘BBB-/A-3’ from
BBB/A-2. The outlook remains negative.

The agency has equalized DBSA’s with those of South Africa which is
consistent criteria for government-related entities as well as the
integral link with the South African government through 100%
ownership.

S&P also notes DBSA’s efforts in increasing support to municipalities
and public-sector projects by way of technical assistance grants,
capacity building initiatives as well as overall support of projects
from initiation to execution of the project.
Furthermore, the agency continues to assess DBSA’s stand-alone profile
of ‘bb’ which was affirmed on 26 October 2016.

A potential future rating upgrade of the issuer would be largely
influenced by an upgrade of the sovereign rating as would be the case
in the event of a further sovereign rating downgrade.

Further information regarding the rating downgrade may be viewed
though the following links:
www.standardandpoors.com/ratingsdirect or
www.dbsa.org



Dated: 12 April 2017

For further information on the notes issued please contact:
Kea Sape                              (011) 344 7654

Debt Sponsor: The Standard Bank of South Africa Limited

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