CAPITEC BANK HOLDINGS LIMITED - Capitec Bank Limited: Foreign Currency Long-Term Issuer Credit Rating Lowered In Line With Country Rating

Capitec Bank Limited: Foreign Currency Long-Term Issuer Credit Rating Lowered In Line With Country Rating

Capitec Bank Holdings Limited
Registration number 1999/025903/06
Registered bank controlling company
Incorporated in the Republic of South Africa
JSE ordinary share code: CPI ISIN code: ZAE000035861
JSE preference share code: CPIP ISIN code: ZAE000083838
("Capitec" or "the company")

Capitec Bank Limited
Incorporated in the Republic of South Africa
Registration No. 1980/003695/06
Registered bank
Company code: BICAP
Stock Code: CBL24
ISIN Code: ZAG000130881
Stock Code: CBL26
ISIN Code: ZAG000136128
Stock Code: CBL27
ISIN Code: ZAG000143884
Stock Code: CBL28
ISIN Code: ZAG000151333
Stock Code: CBL29
ISIN Code: ZAG000158874
(“Capitec Bank” or “the bank”)

CAPITEC BANK LIMITED (WHOLLY OWNED SUBSIDIARY OF CAPITEC BANK HOLDINGS
LIMITED): FOREIGN CURRENCY LONG-TERM ISSUER CREDIT RATING LOWERED IN
LINE WITH COUNTRY RATING

On 29 April 2020, S&P Global Ratings (“S&P”) lowered the credit ratings
on South Africa to ‘BB-’ from ‘BB’ based on the impact that Covid-19 is
expected to have on the country’s fiscal and growth prospects.

S&P does not rate financial institutions in South Africa above the
foreign currency long term sovereign ratings. Therefore, on 7 May 2020,
Capitec Bank’s foreign currency long-term issuer credit rating was
lowered to ‘BB-’ from ‘BB’ in line with that of South Africa. The rest
of Capitec Bank’s credit ratings were left unchanged. The ‘B’ short-
term rating was affirmed. The outlook is stable. Furthermore, the
‘zaAA’ long-term and ‘zaA-1+’ short-term national scale ratings were
affirmed.

S&P’s standalone credit assessment of Capitec Bank has been maintained
despite their view of higher system-wide economic risks. This is
underpinned by ‘the banking sector’s long track record of sound asset
quality, muted risk appetite, and solid regulatory capitalization.’

8 May 2020
Stellenbosch

Sponsor
PSG Capital

Date: 08-05-2020 08:00:00
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