African Bank Ltd Ratings change (3551M)
11 May 2020 - 7:00PM
UK Regulatory
TIDM31HB
RNS Number : 3551M
African Bank Ltd
11 May 2020
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered Bank)
(Registration No. 2014/176899/06)
Company code: ABKI
("the Bank" or "African Bank")
Credit Rating of African Bank by S&P Global Ratings - Long
Term Issuer Credit Rating Lowered, National rating maintained;
Outlook stable
S&P Global Ratings ("S&P") have, on 7 May 2020, lowered
the 'B+' long term issuer credit rating to 'B' and affirmed the 'B'
short term rating. The outlook is stable. S&P have also
affirmed the 'ZaA-/zaA-2' long term and short term South African
national scale ratings for African Bank, respectively.
This rating action follows S&P's downgrade of the South
African sovereign long-term foreign currency rating on 29 April
2020 to 'BB-' from 'BB'. S&P expects South Africa's already
contracting economy to face a further sharp COVID-19 related
downturn in 2020 and that the pandemic will create additional and
more substantial headwinds to GDP growth due to a strict domestic
lockdown, a markedly weaker external demand outlook and tighter
credit conditions. As a result of these and other factors detailed
in their report, S&P have revised down their Banking Industry
Country Risk Assessment ("BICRA") score for South Africa to group 6
from group 5. The anchor for banks operating only in South Africa
is now 'bb+' compared with 'bbb-' previously.
African Bank's stand alone credit profile ("SACP") was lowered
by one notch to 'b', which is consistent with the one notch
downward revision of the anchor for the South African banks.
Amongst other things, S&P noted the following significant
points as part of their ratings review:
-- "The outlook on African Bank Ltd. is stable and reflects our
expectation that its financial and business profile will remain
unchanged over the next 12 months, despite earnings pressure and
limited growth opportunities in the current economic downturn."
The long term issuer credit rating applies to the Bank's Euro
Medium-Term Note ("EMTN") programme and all notes issued under the
US$6 billion EMTN programme, which are listed either on the London
Stock Exchange ("LSE") or the Swiss Securities Exchange ("SIX"),
the ZAR25 billion Domestic Medium Term Note programme ("DMTN") and
all notes issued under that programme are not rated.
11 May 2020
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END
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