2 Apr 2020 13:49
Absa Group Limited
(Previously known as Barclays Africa Group Limited)
ISIN: XS1799058174
2 April 2020
MOODY'S downgrades CREDIT RATING of Absa group limited FOLLOWING DOWNGRADE on the South African sovereign
Notice is hereby given that Moody's Investor Services ("Moody's") has on 31 March 2020 lowered the long-term local currency and foreign currency deposit ratings of Absa Bank Limited to Ba1 from Baa3, and the long-term issuer ratings of Absa Group Limited to Ba2 from Ba1.The outlook on both ratings remains negative.
These rating actions follow Moody's decision to downgrade the South African government's local and foreign currency issuer rating to Ba1 from Baa3, with a negative outlook, on 27 March 2020. Moody's does not rate financial institutions above the credit profile of the government.
The above ratings actions do not reflect any fundamental change in the credit quality of the Absa Group and Absa Bank Limited.
For additional details on the rationale of the ratings action please see the press release by Moody's on 31 March 2020 titled "Rating Action: Moody's downgrades the ratings of five South African banks following downgrade on the South African sovereign. The outlook is negative"
Summary of credit rating change:
| To | From |
|
Absa Group Limited |
|
|
|
Long-term issuer rating | Ba2 | Ba1 |
|
|
|
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Subordinated Tier II (Foreign) | Ba3 | Ba2 |
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Absa Bank Limited |
|
|
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Long-term local currency | Ba1
| Baa3 |
|
Long-term foreign currency | Ba1 | Baa3 |
|
|
|
|
|
Long-term counterparty risk rating | Baa3 | Baa2 |
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Short-term counterparty risk rating | P-3 | P-2 |
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For further information, please contact:
Absa Group Limited Investor Relations
Email: ir@absa.co.za