| Fri 24 Jul 2009, 12:21 | | NED - Nedbank Group and Nedbank Limited - Credit rating action by Moody`s |
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NED NBKP
NED
NED - Nedbank Group and Nedbank Limited - Credit rating action by Moody`s
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
ISIN: ZAE000004875
NEDBANK LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1951/000009/06
JSE share code: NBKP
ISIN: ZAE000043667
NEDBANK LIMITED - CREDIT RATING ACTION BY MOODY`S
Moody`s Investors Service has taken a number of rating actions on the leading
South African banks, including the ratings of Nedbank Limited (Nedbank), the
100%-owned subsidiary of Nedbank Group Limited (Nedbank Group).
According to Moody`s these rating actions have been triggered by the following
three factors:
i) The deteriorating macroeconomic conditions and the
resultant challenges for the South African banking
sector that has led to Moody`s changing the outlook
on the entities` bank financial strength ratings
(BFSRs) to negative from stable, which has affected
Nedbank;
ii) The expected change in the systemic support
indicator for the banking system in South Africa
(please refer to Moody`s special comment "Financial
Crisis More Closely Aligns Bank Credit Risk and
Government Ratings in Non-Aaa Countries") that has
not impacted Nedbank; and
iii) Moody`s upgrade of South Africa`s foreign currency
deposit ceiling from Baa1/P-2 to A3/P-2 that has led
to an upgrade of Nedbank`s long-term foreign
currency deposit ratings, since these ratings were
constrained by the relevant country ceiling.
Similarly, the upgrade of South Africa`s foreign
currency debt ceiling - to A1, with a stable
outlook, from A2 - has also triggered a rating
upgrade in respect of Nedbank`s senior unsecured
debt rated under its European Medium Term Note
Program (EMTN).
The specific impact on Nedbank`s ratings is as follows:
- The foreign currency deposit ratings have been
upgraded to A3/P-2 from Baa1/P-2.
- With regards to Nedbank`s EMTN programme, the rating
for senior unsecured debt has been raised to A1
(negative outlook) from A2; and to A2 (negative
outlook) for subordinated notes.
- The outlook on the C BFSR has been changed to negative
from stable.
- The outlook on the A1 GLC deposit rating has been
changed to negative from stable.
- Nedbank`s national scale debt ratings (relating to its
domestic medium-term note programme) are unchanged,
but now all carry a negative outlook. The outlook on
the Aa1.za National Scale Rating has also been changed
to negative from stable.
Nedbank`s other ratings are not affected by this rating action.
Sandton
24 July 2009
For further information please contact:
Mike Brown (Chief Financial Officer),
tel: +27 (0)11 294 9999, email: mikeb@nedbank.co.za
Markus Borner (Nedbank Group Capital Management),
tel: +27 (0)11 295 8616, email: markusb@nedbank.co.za
Don Bowden (Tier 1 Investor Relations)
tel: +27 (0)21 702 3102, email: don@tier1ir.co.za
Sponsors to Nedbank Group in South Africa:
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Sponsor to Nedbank Group in Namibia:
Old Mutual Investment Services (Namibia) (Pty) Ltd
Sponsors to Nedbank Limited:
Investec Bank Limited
Nedbank Capital
Date: 24/07/2009 12:21:03 Produced by the JSE SENS Department.
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