| Wed 27 Jun 2012, 9:15 | | ASA/ABSP - Absa Bank Limited - Rating downgrade of Absa Bank by Moody`s |
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JSE
BIABS
ASA/ABSP - Absa Bank Limited - Rating downgrade of Absa Bank by Moody`s
Investors Service
Absa Bank Limited
(Incorporated with limited liability in South Africa under registration number
1986/004794/06)
("Absa Bank")
Bond Issuer Code: ABMN
Share Code: ASA
Preference Share Code: ABSP
Rating downgrade of Absa Bank by Moody`s Investors Service ("Moody`s")
Notice is hereby given that Moody`s has on 22 June 2012 downgraded, to A3 from
A2, the long-term local-currency deposit and foreign-currency senior unsecured
debt ratings of Absa Bank.
The downgrade was triggered by the recent downgrade of the standalone credit
assessment of Barclays Bank Plc ("Barclays") (which owns 55.5% of Absa Group
Limited, the holding company of Absa Bank). Moody`s has removed the one notch of
rating uplift from parental support previously incorporated in Absa Bank`s
deposit and senior debt ratings. Barclays long-term deposit and debt rating was
recently downgraded to A2 (negative outlook), from Aa3, and its standalone bank
financial strength ("BFSR") measure was lowered to C-/baa2(stable outlook on the
C-), from C/a3.
The outlooks are stable on Absa Bank`s local-currency deposit and foreign-
currency senior debt rating, which continue to benefit from the banking and
operational expertise available from the parent bank. Furthermore, Moody`s is
comfortable that Absa Bank continues to remain a self-sufficient and
operationally independent entity without any funding dependence from Barclays.
Ratings affected by downgrade action
The local-currency deposit ratings have been downgraded to A3/P-2(stable
outlook) from A2/P-1 and the long-term national-scale deposit rating has been
confirmed at Aa2.za.
With regards to Absa Bank`s EMTN programme, the provisional foreign-currency
senior unsecured debt rating has been downgraded to (P)A3 from (P)A2. Any issued
foreign-currency senior unsecured debt has been downgraded to A3 from A2.
The provisional foreign-currency subordinated and junior subordinated debt
ratings under its EMTN programme have also been downgraded to (P)Baa2 and
(P)Baa3, from (P)Baa1 and (P)Baa2 respectively. All ratings have a stable
outlook.
The C- BFSR (stable outlook), mapping to standalone credit assessment of baa1,
the A3 long-term foreign-currency deposit rating(negative outlook), the P-2
short-term foreign-currency deposit rating and the P-1.za national-scale short-
term deposit rating, all remain unaffected.
Johannesburg
27 June 2012
Debt sponsor
Absa Capital
(the investment banking division of Absa Bank Limited, affiliated with Barclays)
Date: 27/06/2012 09:15:01 Produced by the JSE SENS Department.
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