AFRICAN BANK LIMITED - ABKI - African Bank assigned first time Moodys ratings

ABKI - African Bank assigned first time Moody’s ratings

African Bank Limited
(Incorporated in the Republic of South Africa)
(Registered Bank)
(Registration No. 2014/176899/06)
Company code: ABKI
LEI: 2549008X8SL1B1J86F98
(the “Bank” or “African Bank”)

African Bank assigned first time Moody’s ratings

On 4 October 2023, Moody’s Investors Service (“Moody’s”) assigned its first-time ratings for African
Bank Limited, with the long-and-short-term local and foreign currency deposit ratings of B1/NP,
with a stable outlook assigned to the long-term deposit rating. Moody’s also assigned a long-and-
short-term national scale bank deposits rating of A3.za/P-2.za.

Moody’s concluded that the Bank’s rating reflects the good capital buffers and strong Common
Equity Tier 1, an improving funding and liquidity profile, and a steadily broadening funding base.
These strengths are moderated by a challenging environment for consumers due to high inflation
and interest rates affecting disposable income and debt affordability, resulting in the higher asset
risks as evidenced by the Bank’s increasing non-performing loan ratio. The Bank’s capacity to
generate earnings in the first half of the year was impacted by the increase in credit impairments,
but Moody’s expects a gradual recovery as the Bank tightened credit criteria and focused on
diversification of its revenue base.

The Moody’s press release can be accessed on www.moodys.com.


5 October 2023

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

Date: 05-10-2023 01:00:00
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