AFRICAN BANK INVESTMENTS LIMITED - Moodys affirms African Banks credit ratings outlook changed to negative from stable
ABL ABLP ABL8A ABL8B ABL10A ABL10B ABLI02 ABLS2A ABLS2B ABLI03 ABL11B ABL11A ABLI04 ABL12B ABLS3 ABL13 ABLS4 ABLSI1 ABLS5 ABL14 ABL15 ABLI05 ABLC08 ABL16 ABL17 201307040001A
Moody’s affirms African Bank’s credit ratings, outlook changed to negative from stable
AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL ISIN: ZAE000030060
Preference share code: ABLP ISIN: ZAE000065215
(“ABIL”)
and
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank” or “the Bank”)
Moody’s affirms African Bank’s credit ratings, outlook changed to negative from stable
ABIL announces that Moody’s Investors Service (“Moody’s” or “the Agency”) has affirmed African Bank’s global
senior debt and deposit ratings of Baa3/Prime-3 and local national scale issuer ratings of A2.za/P-1.za. The
outlook for the ratings was changed to negative from stable.
Moody’s said that African Bank originated credit has remained within their expectation and was not the driver for
this change in outlook. The Agency however indicated a concern that, based on ABIL’s interim results released
in May 2013, asset quality on furniture-related credit may deteriorate more than they had initially anticipated.
This, together with potentially weakening profitability on the back of lower yields and increasing provisioning
requirements precipitated a downgrade in their outlook for African Bank. The Bank’s high capital levels continued
to support the current ratings.
Commenting on the outlook downgrade Leon Kirkinis, ABIL’s chief executive, noted that the Bank was confident
that it has already implemented the necessary risk reduction measures and has continued to strengthen the
provisioning buffers, to maintain and grow the business on a healthy and sustainable basis.
Midrand
03 July 2013
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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