NEDBANK LIMITED - Credit ratings actions by Moody's Investor Services and S&P Global Ratings - NBKP/BINBK

Credit ratings actions by Moody's Investor Services and S&P Global Ratings - NBKP/BINBK

NEDBANK LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1951/000009/06
JSE share code: NBKP
Interest rate code: BINBK
ISIN: ZAE000043667
(“Nedbank”)

NBK, NED, NCLN, NEDT1, NILB (all JSE listed bonds issued in terms of Nedbank Limited’s
Domestic Medium Term Note Programme and Structured Note Programme)

CREDIT RATINGS ACTIONS BY MOODY’S INVESTOR SERVICES AND S&P GLOBAL RATINGS

Shareholders and noteholders are referred to the press releases issued by Moody’s Investor
Services (“Moody’s”) and S&P Global Ratings (“S&P”) on 28 and 29 November 2017,
respectively, on South African (SA) banks, including Nedbank.

In line with similar ratings action on the sovereign of SA on 24 November 2017, Moody’s has
placed the credit ratings of Nedbank under review for downgrade and S&P have downgraded
Nedbank’s foreign currency rating to a second notch below investment grade. Financial
institutions in SA, S&P explained, are not rated above the foreign currency sovereign ratings,
given the direct and indirect impact that sovereign distress would have on domestic banks'
operations. As a consequence, any changes to the sovereign credit ratings of SA are
automatically reflected in the credit ratings of SA banks.

Specific ratings action by S&P on Nedbank:

-   Foreign Currency: Long-term lowered to ‘BB’ from ‘BB+’, and short-term affirmed at ‘B’.
    The outlook is stable.
-   SA National Scale: Long-term lowered to ‘zaAA-’ from ‘zaAA’, and short-term affirmed at
    ‘zaA-1+’.

S&P stated: “The financial sector is profitable and well capitalised and that despite the
operating environment, the SA banking sector's performance has outperformed our
expectations”. Furthermore S&P noted: “Rand liquidity will remain in the country because of

resident exchange controls and that the major banks are not exposed to large-scale
refinancing risk or a reversal of investor sentiment, thanks to their lack of exposure to
international wholesale market-based funding. This is an important differentiator from other
emerging markets”.

Nedbank Group Chief Executive, Mike Brown, commented: “The sovereign downgrade
reflects the political uncertainty and economic challenges facing the country and the ratings of
the sovereign are automatically reflected in bank ratings. We have prepared for an
environment of ratings downgrades and have positioned our businesses and our balance
sheet accordingly.”


Sandton
30 November 2017


Sponsors to Nedbank Limited:
Nedbank CIB
Investec Bank Limited

Debt Sponsor to Nedbank Limited:
Nedbank CIB

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