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ABSA Group Limited (41OJ)

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Thursday 02 April, 2020

ABSA Group Limited

Ratings change by Fitch Ratings

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: [email protected]


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