ABSA Group Limited Ratings change by Fitch Ratings (6156I)

TIDM41OJ

RNS Number : 6156I

ABSA Group Limited

02 April 2020

Absa Group Limited

(Previously known as Barclays Africa Group Limited)

ISIN: XS1799058174

2 April 2020

FITCH downgrades SOUTH AFRICAN BANKS TO 'BB' with NEGATIVE OUTLOOK ON CORONAVIRUS IMPACT

Notice is hereby given that Fitch Ratings has on 31 March 2020, downgraded the Long-Term Issuer Default Ratings (IDRs) and Viability Ratings (VRs) of five South African banks and bank holding companies, including Absa Bank Limited and Absa Group Limited, to 'BB' and 'bb' respectively. The outlook on the IDRs are negative.

Fitch noted that: "the ratings action was driven by the expected negative impact from the coronavirus outbreak on the banks' operating environment and key financial metrics, notwithstanding uncertainty as to the full economic and financial market implications."

Following the application of Fitch's updated Bank Ratings Criteria, the agency also updated the notching for subordinated debt to two notches from the issuers' VR and National Rating anchor ratings, compared to one notch under the old criteria. As a result, the subordinated Long-Term Rating for Absa Group's foreign currency subordinated Tier 2 debt has been downgraded to B+.

For additional details on the rationale of the ratings action please see the Fitch Ratings press release dated 31 March 2020, titled "Fitch downgrades South African banks to 'BB' with negative outlook on Coronavirus impact"

http://www.rns-pdf.londonstockexchange.com/rns/6156I_1-2020-4-2.pdf

Summary of credit rating change:

Absa Group Limited

 
                                   To   From   Outlook 
 Long Term Issuer Default Rating   BB   BB+    Negative 
 Viability Rating                  bb   bb+    - 
 Subordinated; Long Term Rating    B+   BB     -

Absa Bank Limited

 
                                   To   From   Outlook 
 Long Term Issuer Default Rating   BB   BB+    Negative 
 Viability Rating                  bb   bb+

For further information, please contact:

Absa Group Limited Investor Relations

Email: ir@absa.co.za

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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April 02, 2020 08:59 ET (12:59 GMT)

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