| Wed 6 Sep 2006, 11:00 | | Nedbank -: Fitch changes Nedbank Limiteds outlook |
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NED
NED
Nedbank -: Fitch changes Nedbank Limited"s outlook to positive
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
ISIN: ZAE000004875
Press Release: Fitch changes Nedbank Limited"s outlook to positive
Fitch Ratings-London/Johannesburg/New York-06 September 2006: Fitch Ratings
has today revised the Outlook on Nedbank Limited"s ("Nedbank") Foreign
Currency Issuer Default Rating ("IDR") to Positive from Stable. At the same
time, the agency has affirmed the ratings of Nedbank and its parent Nedbank
Group Limited ("Nedbank Group"). A detailed list of the ratings is provided
at the end of this statement.
Fitch"s revised Outlook reflects the strong financial performance
improvements made by Nedbank during FYE05 and H106. During FYE05, Nedbank
Group"s net earnings grew 128% as a result of improved net interest income,
tightly managed costs and once-off gains realised from the sale of non-core
investments. Since end-2005 this trend has continued with the group
reporting a 59% year-on-year increase in H106 core earnings. Fitch
anticipates the trend in earnings growth to slow although core earnings are
expected to stabilise at higher levels during FY06.
The ratings also reflect Nedbank Group"s and Nedbank"s well established
domestic franchise and gains in asset quality. This is counter-balanced by
a loss of retail market share, albeit that the rate of loss has slowed more
recently and, the potential for deteriorating efficiency ratios as an
expanding branch network could lead to higher costs.
Nedbank has three core operating divisions - Nedbank Corporate, Nedbank
Retail and Nedbank Capital and owns 50.1% of Imperial Bank. The group is
51.2%-owned by Old Mutual and its subsidiaries.
Nedbank Group Limited
Foreign currency IDR affirmed at "BBB" with a Stable Outlook;
Local currency IDR affirmed at "BBB" with a Stable Outlook;
Short-term foreign currency affirmed at "F3";
National Long-term affirmed at "A+ (zaf)" with a Stable Outlook;
National Short-term affirmed at "F1 (zaf)";
Individual affirmed at "C" and
Support affirmed at "2"
Nedbank Limited
Foreign currency IDR affirmed at "BBB", Outlook changed to Positive from
Stable; Local currency IDR affirmed at "BBB+" with a Stable Outlook;
Short-term foreign currency affirmed at "F3";
National Long-term affirmed at "AA-(AA minus)(zaf)" with a Stable Outlook;
National Short-term affirmed at "F1+(zaf)";
Individual: affirmed at "C" and
Support affirmed at "2"
A detailed credit update will be available shortly at www.fitchratings.com.
Contact: Ed Thompson, New York, +1 212 908 0364; Anthony Walker, Denzil de
Bie, Johannesburg, +27 11 516 4900.
PRESS RELEASE: FITCH AFFIRMS SOUTH AFRICA"S IMPERIAL BANK AT "A+ (ZAF)";
OUTLOOK STABLE
Fitch Ratings-London/Johannesburg-05 September 2006: Fitch Ratings has
today affirmed South Africa-based Imperial Bank Limited"s ("Imperial")
ratings at National Long-term "A+ (zaf)". The Outlook is Stable. At the
same time, the agency has affirmed Imperial"s National Short-term and
Support ratings at "F1 (zaf)" and "2", respectively.
Imperial is 50.1%-owned by Nedbank Limited ("Nedbank", rated "AA-" (AA
minus) (zaf)). The bank"s ratings reflect Fitch"s view that there is a high
probability that Nedbank would provide support to Imperial should the need
arise. Any future changes in Nedbank"s ratings or modification in the level
of commitment and support from Nedbank would therefore affect Imperial"s
ratings.
Nedbank provides Imperial Bank with funding and integrated risk management
support. Imperial"s other shareholder, Imperial Holdings Limited ("IHL"),
provides a supportive asset finance market.
Imperial was established in 1995 as a wholly-owned subsidiary of IHL. In
January 2001, Nedbank purchased its current stake as part of a strategic
joint venture. Imperial is a niche provider of asset-based finance.
Further details on Imperial are contained in an up-coming credit analysis
available at www.fitchratings.com.
Contact: Denzil de Bie, Anthony Walker, Johannesburg, +27 11 516 4900.
Fitch"s National ratings provide a relative measure of creditworthiness for
rated entities in countries with relatively low international sovereign
ratings and where there is demand for such ratings. The best risk within a
country is rated "AAA" and other credits are rated only relative to this
risk. National ratings are designed for use mainly by local investors in
local markets and are signified by the addition of an identifier for the
concerned, such as "AAA (zaf)" for National ratings in South Africa.
Specific letter grades are not therefore internationally comparable.
Fitch"s rating definitions and the terms of use of such ratings are
available on the agency"s public site, www.fitchratings.com. Published
ratings, criteria and methodologies are available from this site, at all
times. Fitch"s code of conduct, confidentiality, conflicts of interest,
affiliate firewall, compliance and other relevant policies and procedures
are also available from the "Code of Conduct" section of this site.
Date: 06/09/2006 11:00:18 AM Produced by the JSE SENS Department
