ABSA BANK LIMITED - BIABS - Crerdit rating action by Moody's

BIABS - Crerdit rating action by Moody's

ABSA BANK LIMITED
(Incorporated with limited liability in South Africa under registration number 1986/004794/06)
Bond Issuer Code: BIABS
(“Absa Bank”)

CREDIT RATING ACTION BY MOODY’S INVESTORS SERVICES (“MOODY’S”)

Notice is hereby given in terms of the Debt Listings Requirements of the JSE Limited that Moody’s has
on 12 June 2017, downgraded the long-term local and foreign currency deposit ratings of Absa Bank and
four of the other largest South African banks. This follows similar action taken on the South African
Sovereign, which was downgraded on 9 June 2017.

Moody’s downgraded the long-term local and foreign currency deposit ratings of Absa Bank to
‘Baa3’/’Negative Outlook’ from ‘Baa2’/’Under Review’. This action follows the recent one-notch
downgrade on South Africa’s sovereign rating to ‘Baa3’/’Negative Outlook’. The long-term national scale
rating of Absa Bank was affirmed at ‘Aa1.za’.

According to Moody’s, the primary driver of the ratings downgrade is the challenging operating
environment in South Africa, characterized by a pronounced economic slowdown, and weakening
institutional strength. Furthermore, due to the correlation between sovereign and bank credit risk, Absa
Bank’s rating is constrained by the rating of the South African government.

The decision to affirm the bank’s national scale ratings (NSRs) at ‘Aa1.za follows the recalibration of
South Africa’s NSR mappings, triggered by the downgrade of South Africa’s government bond rating.
The negative outlook assigned to the bank’s ratings is primarily linked to the negative outlook on the
sovereign rating.

Further details are available on Moody’s website or press release ‘Moody’s downgrades the five largest
South African banks to Baa3’.

14 June 2017

Debt sponsor to Barclays Africa Group and Absa Bank Limited:
Corporate and Investment Bank, a division of Absa Bank Limited

Date: 14/06/2017 12:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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