Investec PLC FITCH CREDIT RATING CHANGE (0956H)
December 01 2020 - 7:00AM
UK Regulatory
TIDMINVP
RNS Number : 0956H
Investec PLC
01 December 2020
Investec Limited Investec plc
Incorporated in the Republic of Incorporated in England and
South Africa Wales
Registration number 1925/002833/06 Registration number 3633621
JSE share code: INL LSE share code: INVP
NSX share code: IVD JSE share code: INP
BSE share code: INVESTEC ISIN: GB00B17BBQ50
JSE interest rate issuer code:
INLV
ISIN: ZAE000081949
As part of the dual listed company structure, Investec plc and
Investec Limited notify both the London Stock Exchange and the JSE
Limited of matters which are required to be disclosed under the
Disclosure Guidance and Transparency Rules and Listing Rules of the
United Kingdom Listing Authority and/or the JSE Listing
Requirements.
Accordingly, we advise of the following:
Investec Limited - Credit rating actions by Fitch Ratings
In line with the Debt Listing Requirements of the JSE Limited
requiring issuers of listed debt in South Africa to notify the
market in the event of amendments to the credit rating of the
issuer, shareholders and noteholders are referred to the Fitch
Ratings (Fitch) press release on 27 November 2020 and the rating
actions taken on South African bank holding companies, including
the ratings of Investec Limited.
Fitch has downgraded the long-term Issuer Default Ratings (IDRs)
and Viability Rating (VR) of Investec Limited to 'BB-' and 'bb-'
(from BB and bb), respectively. The Outlook on the IDRs remains
Negative.
The rating actions follow Fitch's downgrade of the South African
sovereign's long-term IDRs to 'BB-' from 'BB' on 20 November 2020.
Fitch considers that South African banks cannot be rated above the
South African sovereign given the high concentration of their
activities within South Africa and significant sovereign exposure
(dominated by government debt but also includes that of
public-sector corporates).
The specific rating changes for Investec Limited are as
follows:
To From
-------------------------------------
Long-term foreign and local currency BB- BB
Issuer Default Ratings
Viability Rating bb- bb
------------------------------------- ----------- ------------
The downgrades, taken in isolation of any other matters, are
expected to have an immaterial impact on Investec's risk weighted
assets and therefore the impact on regulatory capital is also
expected to be immaterial. In addition, the downgrades are expected
to have a small impact on Investec Limited's cost of funds over
time, as a result of Investec Limited being predominantly domiciled
in South Africa and raising most of its deposits and funding in the
closed rand system, with very little mismatch between foreign
denominated funding and foreign denominated assets.
Investec Limited is listed on the Johannesburg Stock Exchange
and houses the Investec Group's Southern African operations).
Investec plc is listed on the London Stock Exchange (with a
secondary listing on the Johannesburg Stock Exchange) and houses
the Investec Group's non-Southern African operations). From a
creditors perspective the entities (and their respective banking
subsidiaries) are separately ring-fenced legal entities, which are
reviewed and rated separately by Rating Agencies.
The Fitch press release can be accessed at www.fitchratings.com
.
Johannesburg and London
1 December 2020
Sponsor:
Investec Bank Limited
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