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INVESTEC LIMITED - Investec Limited - Credit rating actions by Fitch Ratings

Release Date: 01/12/2020 14:00
Code(s): INL INP     PDF:  
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Investec Limited - Credit rating actions by Fitch Ratings

Investec Limited                                      Investec plc
Incorporated in the Republic of South Africa          Incorporated in England and Wales
Registration number 1925/002833/06                    Registration number 3633621
JSE share code: INL                                   LSE share code: INVP
NSX share code: IVD                                   JSE share code: INP
BSE share code: INVESTEC                              ISIN: GB00B17BBQ50
JSE interest rate issuer code: INLV
ISIN: ZAE000081949

As part of the dual listed company structure, Investec plc and Investec Limited notify both the
London Stock Exchange and the JSE Limited of matters which are required to be disclosed
under the Disclosure Guidance and Transparency Rules and Listing Rules of the United
Kingdom Listing Authority and/or the JSE Listing Requirements.

Accordingly, we advise of the following:

Investec Limited - Credit rating actions by Fitch Ratings

In line with the Debt Listing Requirements of the JSE Limited requiring issuers of listed debt
in South Africa to notify the market in the event of amendments to the credit rating of the
issuer, shareholders and noteholders are referred to the Fitch Ratings (Fitch) press release
on 27 November 2020 and the rating actions taken on South African bank holding companies,
including the ratings of Investec Limited.

Fitch has downgraded the long-term Issuer Default Ratings (IDRs) and Viability Rating (VR)
of Investec Limited to 'BB-' and 'bb-' (from BB and bb), respectively. The Outlook on the IDRs
remains Negative.

The rating actions follow Fitch's downgrade of the South African sovereign's long-term IDRs
to 'BB-' from 'BB' on 20 November 2020. Fitch considers that South African banks cannot be
rated above the South African sovereign given the high concentration of their activities within
South Africa and significant sovereign exposure (dominated by government debt but also
includes that of public-sector corporates).

The specific rating changes for Investec Limited are as follows:

                                                                     To               From
  Long-term foreign and local currency Issuer Default Ratings        BB-                BB

  Viability Rating                                                   bb-                bb


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 Limited’s cost of funds over time, as a result of Investec 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.

Investec Limited is listed on the Johannesburg Stock Exchange and houses the Investec
Group’s Southern African operations). Investec plc is listed on the London Stock Exchange
(with a secondary listing on the Johannesburg Stock Exchange) and houses the Investec
Group’s non-Southern African operations). From a creditors perspective the entities (and their
respective banking subsidiaries) are separately ring-fenced legal entities, which are reviewed
and rated separately by Rating Agencies.

The Fitch press release can be accessed at www.fitchratings.com.


Johannesburg and London

1 December 2020

Sponsor:
Investec Bank Limited

Date: 01-12-2020 02:00:00
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