Rating outlook revised of The Standard Bank of South Africa Limited (“SBSA”) by Fitch Ratings Agency (“Fitch")
THE STANDARD BANK OF SOUTH AFRICA LIMITED
(REGISTRATION NUMBER 1962/000738/06) –
Rating outlook revised of The Standard Bank of South Africa Limited (“SBSA”) by Fitch
Ratings Agency (“Fitch")
IN TERMS OF SECTION 4.25 OF THE JSE DEBT LISTING REQUIREMENTS, NOTICE
IS GIVEN TO ALL HOLDERS OF NOTES: SBK, SBAG1, SBAS1, SBAPL1, SBAPD1,
SBAE, SBACRN, SBAWHT, SBACOP, SBAOIL, SBACI, 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
In terms of section 4.25 of the JSE Debt Listing Requirements, notice is hereby given that
Fitch has on 17 June 2014 revised the outlook to negative on the long term Issuer Default
Ratings (“IDR”) of SBSA following the revision of the South African sovereign rating to
negative outlook on 13 June 2014.
Fitch describes the change in outlook as reflective of the bank’s concentration to South
Africa, a high proportion of liquid assets invested in government securities and a
weakening operating environment as indicated by the negative outlook on the sovereign
rating. The sovereign rating is effectively acting as a cap on large South African banks’
Viability Ratings (“VR”) at this rating level because of their strong links with South Africa.
National ratings reflect the creditworthiness of an issuer relative to the best credit in the
country. The outlooks on the National Ratings assigned to SBSA have been maintained on
stable, reflecting Fitch's expectation that its ranking relative to the best credit in the country
will remain stable.
SBSA’s VR continues to reflect a strong domestic franchise, which underpin stable core
earnings, sophisticated risk management, and acceptable liquidity and capitalisation.
Summary of ratings affected by revised outlook:
Standard Bank of South Africa Limited:
Long-term foreign currency IDR: affirmed at 'BBB'; Outlook revised to Negative from Stable
Long-term local currency IDR: affirmed at 'BBB'; Outlook revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'F3'
Viability Rating: affirmed at 'bbb'
Support Rating: affirmed at '3'
Support Rating Floor: affirmed at 'BB+'
National Long-term rating: affirmed at 'AA(zaf)'; Outlook Stable
National Short-term rating: affirmed at 'F1+(zaf)'
Senior unsecured debt: Long-term foreign currency rating affirmed at 'BBB'; Short-term
foreign currency affirmed at 'F3'
For commentary on the detailed ratings action taken on SBSA together with the other
South African Banks, please refer to the Fitch press release on their website:
18 June 2014
For further information please contact:
Reshika Harilall - Group Ratings Management
Tel: +27 11 415 4349
Ann Hunter – Head: Strategic Funding
Tel: +21 11 415 4194
Debt Sponsor – The Standard Bank of South Africa Limited
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