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FIRSTRAND BANK LIMITED - Amendment to FirstRand Bank Limiteds credit ratings

Release Date: 25/11/2020 14:30
Wrap Text
Amendment to FirstRand Bank Limited’s credit ratings

FirstRand Bank Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1929/001225/06)
JSE company code interest rate issuer: FRII
JSE company code debt issuer: FRD
JSE company code ETF issuer: FRLE
JSE company code ETN issuer: FRTN
(FRB or the bank)


On 24 November 2020, Moody’s Investors Service (Moody’s) lowered the long-term local currency and
foreign currency deposit ratings on five South African banks, including FRB. This follows the downgrade
of the South African sovereign rating to Ba2 from Ba1.

The rating action on the banks, including FRB, was driven by:
1) deterioration in the creditworthiness of the South African sovereign, as reflected in the downgrade
   of the South African government to Ba2 from Ba1 on 20 November 2020; and
2) the gradual weakening of the banks’ standalone credit profile as the COVID-19 pandemic
   exacerbates an already challenging operating environment in South Africa.

Moody’s maintains a negative outlook on the bank, reflecting the negative outlook on the sovereign

Summary of rating actions on FirstRand Bank Limited:

                                                                           To                From

 Long term bank deposits (domestic and foreign)                            Ba2                Ba1

 Senior unsecured (domestic)                                               Ba2                Ba1

 Senior unsecured MTN (domestic and foreign)                             (P)Ba2             (P)Ba1

 Subordinate (domestic and foreign)                                        B1                 Ba3

 Subordinate (domestic)                                             

 Subordinate MTN (domestic and foreign)                                   (P)B1             (P)Ba3

 Junior subordinate MTN (domestic)                                        (P)B1             (P)Ba3

 Subordinate and junior subordinate MTN (domestic)                  

 Baseline credit assessment                                                ba2                ba1

 Adjusted baseline credit assessment                                       ba2                ba1

 Counterparty risk rating (domestic and foreign)                         Ba1/NP            Baa3/P-3

 Counterparty risk assessment                                         Ba1(cr)/NP(cr)    Baa3(cr)/P-3(cr)

The Moody’s press release can be accessed on:, and also include a detailed list of
all rating changes related to FRB.

25 November 2020

Debt sponsor:
RAND MERCHANT BANK (a division of FirstRand Bank Limited)

Date: 25-11-2020 02:30:00
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