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ABSA GROUP LIMITED - ABGI, BIABS and ABSP - Moody's Rating Action

Release Date: 19/04/2024 17:30
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ABGI, BIABS and ABSP - Moody's Rating Action

(Incorporated with limited liability in South Africa under registration number 1986/003934/06)
Bond Issuer Code: ABGI
("ABSA Group" or "ABGI")

(Incorporated with limited liability in South Africa under registration number 1986/004794/06)
Bond Issuer Code: BIABS
Bond Issuer Code: ABSP
("Absa Bank")


Moody's Investor Services ("Moody's") advised they have changed their methodology for rating South Africa
banks following the introduction of an operational resolution regime for the banking system in South Africa.
Moody's have applied their Advanced Loss Given Failure (Advanced LGF) analysis to banks operating in
jurisdictions with Operational Resolution Regimes. The Advanced LGF framework assesses the potential
impact of a bank's failure on its various debt classes and deposits, taking into account the subordination of
more junior liabilities and the volume of each class of liabilities.

As a result of the methodology change the long-term deposit ratings of rated banks were upgraded by two
notches, where applicable, while the senior unsecured programme ratings of South Africa's four largest
banks were upgraded by one notch; and the long-term issuer ratings of the two rated banking holding
companies were upgraded by one notch.

The application of Moody's change on 06 March 2024 resulted in an upgrade of the long-term local currency
and foreign currency deposit ratings of Absa Bank Limited to Baa3 from Ba2, and the long-term issuer
ratings of Absa Group Limited to Ba2 from Ba3. The outlook on both ratings is stable.

For additional details on the rationale of the ratings action please see the press release by Moody's on 06
March 2024 titled "Moody's upgrades deposit ratings of rated South African banks following the Banks
Methodology update"

Summary of credit rating change:

                                                    To                  From
 Absa Group Limited
 Long-term issuer rating                            Ba2                 Ba3

 Absa Bank Limited
 Long-term local currency                           Baa3                Ba2

 Long-term foreign currency                         Baa3                Ba2

 Long-term counterparty risk rating                 Baa3                Ba1

 Short-term counterparty risk rating                P-3                 NP

19 April 2024

Debt sponsor to ABSA Group Limited and Absa Bank Limited:
Absa Bank Limited, acting through its Corporate and Investment Banking division

Date: 19-04-2024 05:30:00
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