INVESTEC BANK LIMITED - Investec Bank Limited: Credit Rating actions by Moody's Investors Service and Fitch Ratings

Investec Bank Limited: Credit Rating actions by Moody's Investors Service and Fitch Ratings

Investec Bank Limited
Incorporated in the Republic of South Africa
Registration number 1969/004763/06
JSE Share Code: IBRP1
ISIN: ZAE000242525


Investec Bank Limited

Investec Bank Limited: Credit Rating actions by Moody's Investors Service and Fitch
Ratings

Shareholders and noteholders are referred to the Moody´s Investors Service (Moody´s) and
Fitch Ratings (Fitch) press releases on 31 March 2020 and rating actions on South African
banks, including the ratings of Investec Bank Limited.

Moody’s
Moody´s has downgraded Investec Bank Limited’s long-term local and foreign currency
deposit ratings to Ba1 from Baa3. The outlook on the South African banks' long-term deposit
ratings remains negative.

This rating action follows the downgrade of the South African government's long-term issuer
ratings to Ba1 from Baa3 (negative outlook) on 27 March 2020. The South African sovereign
ratings act as a ceiling such that the ratings of South African banks cannot be higher than
that of the sovereign.


The specific rating changes for Investec Bank Limited by Moody’s are as follows:

                                                               To              From
 Long-term deposits (foreign and domestic)                    Ba1                  Baa3
 Short-term deposits (foreign and domestic)                   NP                   P-3
 Long-term counterparty risk (foreign and domestic)          Baa3                  Baa2
 Short-term counterparty risk (foreign and domestic)          P-3                  P-2
 Senior unsecured (domestic)                                  Ba1                  Baa3
 Senior unsecured MTN (foreign)                             (P)Ba1            (P)Baa3
 Subordinate MTN and Tier III Debt MTN (foreign)            (P)Ba2             (P)Ba1
 Baseline credit assessment                                   ba1                  baa3

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

Fitch
Fitch has downgraded the Long-Term Issuer Default Ratings (IDRs) and Viability Rating (VR)
of Investec Bank Limited to 'BB' and 'bb' (from BB+ and bb+), respectively. The Outlook on
the IDRs has remained Negative. Investec Bank Limited’s National Long-Term Rating was
also downgraded and the Outlook revised to Negative from Stable.
According to Fitch, the rating action is driven by Fitch’s expectation of a negative impact from
the coronavirus outbreak on the South African banks' operating environment and key financial
metrics, notwithstanding uncertainty as to the full economic and financial market implications.

In addition, following the application of Fitch's updated Bank Rating Criteria, the agency has
increased the notching for Investec Bank Limited’s Tier 2 debt rating to two notches (from
one notch) from its VR and National Rating.

The specific rating changes for Investec Bank Limited by Fitch are as follows:

                                                                To                 From
 Long-term foreign and local currency Issuer Default            BB                 BB+
 Ratings
 National long-term rating                                    AA-(zaf)            AA(zaf)

 Viability Rating                                               bb                  bb+

 Senior unsecured long-term rating                              BB                 BB+

 Subordinated National long-term rating                        A(zaf)            AA-(zaf)

Fitch’s press release can be accessed on: www.fitchratings.com.

The downgrades, taken in isolation of any other matters, are expected to have an immaterial
impact on Investec’s risk weighted assets and therefore the impact on regulatory capital is
also expected to be immaterial. In addition, the downgrades are expected to have a small
impact on Investec Bank Limited’s cost of funds over time, as a result of Investec Bank
Limited being predominantly domiciled in South Africa and raising most of its deposits and
funding in the closed rand system, with very little mismatch between foreign denominated
funding and foreign denominated assets.


2 April 2020

N van Wyk
Company Secretary
Investec Bank Limited


Sponsor:
Investec Bank Limited

Date: 02-04-2020 01:00:00
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