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STANDARD BANK GROUP LIMITED - Amendment to Standard Bank Group and The Standard Bank of South Africa credit ratings

Release Date: 13/06/2017 11:00
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Amendment to Standard Bank Group and The Standard Bank of South Africa credit ratings

Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
NSX share code: SNB ZAE000109815
(“Standard Bank Group” or “SBG”)

The Standard Bank of South Africa Limited
SBS, SBSi, SBK, SBAG, SBAS, SBAPL, SBAPD, SBAE, SBACRN, SBAWHT,
SBACOP, SBAOIL, SBACI, SBN, SSN and CLN (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))
(“The Standard Bank of South Africa” or “SBSA”)

(JSE listed bonds in terms of Standard Bank Group Limited’s
Domestic Medium Term Note Programme)

Amendment to Standard Bank Group and The Standard Bank of South
Africa credit ratings

In accordance with paragraph 4.26 of the JSE Listings
Requirements, noteholders are hereby advised of the amendment to
SBG and SBSA’s credit rating effective on 12 June 2017.

Moody’s Investors Service (“Moody’s” or “the agency”) has
downgraded the Long-Term local and foreign currency deposit
ratings of SBSA to Baa3 from Baa2, and the Short-Term local and
foreign currency deposit ratings to P-3 from P-2. The agency
also downgraded the Long-Term local and foreign currency Issuer
Ratings of SBG to Ba1 from Baa3. The Long-Term and Short-Term
National Scale Ratings of SBSA were affirmed as P-1.za and
Aa1.za respectively. A negative outlook was assigned.

This rating action concludes the review initiated on 4 April
2017 on the five largest South African banks and follows the
weakening of the South African government’s credit profile, as
captured by Moody’s lowering of the Long-Term Issuer Ratings of
the South African sovereign rating to Baa3 from Baa2 on 9 June
2017.

In view of the correlation between sovereign and bank credit
risk, SBSA’s ratings are constrained by the rating of the South
African government. As is its standard practice, Moody’s
positions SBG’s Issuer Rating one notch lower than the deposit
ratings of SBSA, reflecting the structural subordination of
SBG’s creditors to those of SBSA.


Moody's expects SBSA’s financial fundamentals to largely remain
robust, despite the weak economic environment exerting some
pressure on its earnings and testing the resilient performance
it has demonstrated in recent years. Moody's expects SBSA will
maintain healthy capital levels.


For commentary on the detailed ratings action taken on SBG and
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-the-five-
largest-South-African-banks-to-Baa3--
PR_367888?WT.mc_id=MDCAlerts_realtime%7e23fe66bc-329a-4f75-9930-
ef72fdad0459


Johannesburg
13 June 2017

Lead Sponsor: The Standard Bank of South Africa Limited
Independent Sponsor:Deutsche Securities (SA) Proprietary Limited
Namibian sponsor: Simonis Storm Securities (Proprietary) Limited

Debt Sponsor: The Standard Bank of South Africa Limited

Date: 13/06/2017 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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