Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's downgrades five South African banks' deposit ratings to Baa2; outlooks stable

10 Nov 2014

Actions follow the weakening of the South African government's credit profile

Limassol, November 10, 2014 -- Moody's Investors Service has today downgraded by one notch to Baa2 (stable) from Baa1 (on review for downgrade) the long-term deposit and senior debt ratings of the five largest South African banks: The Standard Bank of South Africa Limited (SBSA), Absa Bank Limited, FirstRand Bank Limited (FirstRand), Nedbank Limited (Nedbank), and Investec Bank Limited (Investec). These rating actions conclude the rating review initiated for these banks on 19 August 2014. A full list of banks' ratings affected by these actions is provided at the end of this press release.

Today's rating actions are driven primarily by (1) the weakening of the South African government's credit profile, as captured by Moody's downgrade of South Africa's bond rating to Baa2 (stable) from Baa1 (negative) on 6 November 2014, combined with the banks' sizable holdings of sovereign debt securities, which links their creditworthiness to that of the national government; and to a lesser extent by (2) the challenges these banks face in view of weaker economic growth in South Africa, particularly in the context of consumer affordability pressures and still-high consumer indebtedness that will likely lead to increased credit risks and higher loan impairments for the banks.

The stable outlook assigned to all banks' deposit ratings mainly reflects the stable outlook on the sovereign rating, and the rating agency's views that the banks' lower Baa2 ratings appropriately capture the pressures from economic headwinds, particularly in light of the banks' earnings and capital buffers.

RATINGS RATIONALE

-- DOWNGRADE OF BANKS' DEPOSIT RATINGS

Moody's has downgraded the deposit and senior debt ratings to Baa2 from Baa1 for SBSA, Absa Bank, FirstRand, Nedbank and Investec primarily due to the weakening of the South African government's credit profile, as captured by Moody's recent downgrade of South Africa's government bond rating to Baa2 (stable) from Baa1 (negative). The banks' high sovereign exposure, mainly in the form of government debt securities they hold as part of their liquid assets requirement, links their credit profile to that of the government.

The top five banks' sovereign exposure averages around 135% of their capital bases, according to regulatory returns (BA900) as of August 2014. In view of the correlation between sovereign and bank credit risk, these banks' ratings are constrained by the rating of the government.

As a secondary consideration, today's rating actions take into account the challenges that the banks' financial performance will face because of South Africa's weak economic growth. The rating agency expects GDP growth of 1.4% in 2014 from 1.9% in 2013, levels significantly below the historical average of 4.9% during 2004-08. These challenging economic conditions, combined with increasing interest rates and high household indebtedness, will lead to elevated credit risks and potentially higher impairments for banks, exerting some modest pressure on their earnings.

-- STABLE OUTLOOK

The stable outlook on the deposit ratings mainly reflects the stable outlook on the sovereign rating. In addition, the stable outlook also takes into account the rating agency's views that the banks' lower Baa2 rating level appropriately captures the pressures from economic headwinds, particularly in light of the banks' capital buffers.

South African banks have already taken measures to strengthen their balance sheets, including maintaining adequate capital buffers to absorb losses and slowing down their growth in the high-margin unsecured retail lending market that has been deteriorating in recent quarters. Although the rating agency expects that asset-quality metrics and earnings-generating capacity will come under some pressure amid increased loan loss provisions, it expects that these measures will help the banks weather the headwinds.

Moreover, while these banks maintain a certain reliance on wholesale funding that will raise their funding costs, Moody's notes that the banks continue to display adequate liquidity buffers.

-- BANK SPECIFIC FACTORS

- The Standard Bank of South Africa Limited

SBSA's deposit rating downgrade to Baa2 (stable) from Baa1 (on review for downgrade) is mainly driven by its high sovereign exposure in the form of government debt securities, representing around 117% of its capital base as of August 2014. In view of the correlation between sovereign and bank credit risk, SBSA's rating is constrained by the rating of the government. As a secondary driver, the rating action also takes into account the anticipated pressures on the bank's financial performance in view of the weak economic conditions in South Africa.

Over the next 12-18 months, Moody's expects SBSA to post modest earnings growth, in view of potentially higher loan impairments from its personal and business banking segment and scarce business opportunities. The bank's H1 2014 performance included a marginal 2% year-on-year increase in profits, mainly impacted by a 15% increase in operating expenses compared to a 9% increase in total revenues. Moody's notes that specific credit impairment charges increased by 4% during H1 2014, although the bank's credit loss ratio (loan loss provisions % gross loans) came down to 1.16% in June 2014 from 1.21% in June 2013, and its non-performing loans (NPLs) to gross loans ratio stood at 3.5% in June 2014.

SBSA's ratings and stable outlook are underpinned by its leading franchise in South Africa, especially in the corporate segment, which ensures diversified and recurring sources of earnings, combined with healthy capital levels. The rating agency notes SBSA's common equity Tier 1 (CET1) ratio of 12.2% as of June 2014, up from 11.3% in June 2013, and expects that it will likely benefit further from the sale of the group's UK subsidiary, providing an adequate cushion for absorbing losses.

In addition to SBSA's rating action, Moody's also downgraded the long-term issuer rating of Standard Bank Group (SBG) to Baa3 (stable) from Baa2 (on review for downgrade). SBG's issuer rating is positioned one notch lower than the local-currency deposit rating of its fully-owned main banking subsidiary SBSA, reflecting the structural subordination of SBG's creditors to those of SBSA.

The rating agency also downgraded Standard Bank Plc's (SBP) deposit and senior debt ratings to Baa3 (on review with direction uncertain) from Baa2 (on review with direction uncertain), which are aligned with those of SBG in view of its highly-integrated and harmonized status as its UK subsidiary catering to the group's global markets business. However, the rating agency has left SBP's ratings on review with direction uncertain, pending completion of its 60% take-over by Industrial & Commercial Bank of China (ICBC: deposits A1 stable, bank financial strength rating C-/baseline credit assessment baa2 stable) announced in January 2014. The review will assess SBP on a standalone basis, in addition to incorporating any new parental support from ICBC in order to appropriately position its ratings.

- Absa Bank Limited

Absa Bank's holdings of sovereign debt securities, at a high 182% of its capital base as of August 2014, constitute the main driver behind its deposit rating downgrade to Baa2 (stable) from Baa1 (on review for downgrade). In view of the correlation between sovereign and bank credit risk, Absa Bank's rating continues to be aligned with the rating of the government. The rating action also reflects the likely pressure on the bank's earnings from the challenging economic conditions. To this end, Moody's notes that the bank's H1 2014 performance included a modest 2% year-on-year increase in profit for the period, despite a 11% decline in loan impairment losses.

Although Moody's sees downward pressure on the bank's standalone baseline credit assessment (BCA) of baa2, owing to its weakened capital base and relatively high level of non-performing loans (NPLs), Moody's notes that Absa Bank's deposit and debt ratings carry a stable outlook, in view of the very high parental support assumptions from Barclays Bank Plc.

Absa Bank's CET1 ratio decreased to 10.1% in June 2014 from 12.2% in June 2013, which has weakened the bank's capital buffers to absorb loan losses in case of need. This reduction was mainly driven by special dividend payments in 2013-14, which if sustained will limit the bank's internal capital generation. Moody's does not expect any significant increase in Absa Bank's CET1 in the near term and also notes its NPLs ratio of 4.3% as of June 2014, which although down from 5.3% in June 2013, is still higher than its similarly-rated local peers' average ratio of 2.8% as of June 2014 and the global median for banks with a BCA of baa2 of 2.3% as of end-2013.

On balance, Moody's said that the stable outlook on Absa Bank's deposit and debt ratings reflect the very high parental support assumptions from Barclays Bank Plc (deposits A2 negative, bank financial strength rating C-/baseline credit assessment baa2 stable) that owns 62.3% of the bank's holding company Barclays Africa Group Limited. Such parental support offsets downward pressure on the bank's deposit and debt ratings stemming from its standalone credit profile.

- FirstRand Bank Limited

FirstRand's deposit rating downgrade to Baa2 (stable) from Baa1 (on review for downgrade) was mainly triggered by its sovereign debt exposure, amounting to around 96% of its capital base as of August 2014. In view of the correlation between sovereign and bank credit risk, FirstRand Bank's rating continues to be aligned with the rating of the government. To a lesser extent, the rating action also reflects Moody's expectation that the challenging economic conditions will moderate its earnings growth in the foreseeable future. Although Moody's recognises the bank's strong financial performance in the last two years, it expects increased impairments from the bank's retail and asset-finance exposures going forward.

Nonetheless, Moody's expects FirstRand to continue to outperform its local peers, leveraging its successful transactional banking franchise that contributed around 36% of the group's total gross revenues as of June 2014. The bank's full-year performance as of June 2014 showed a 14% year-on-year increase in normalised earnings, posting the highest profitability ratios amongst its local peers with a normalised return on equity of 21.9% and a return on assets of 1.51%.

In terms of the stable outlook on the ratings, the rating agency also acknowledges FirstRand's high overall provisioning coverage of its NPLs (2.4% as of June 2014) of approximately 87% in June 2014, and its strongest capital position among its local peers with a CET1 ratio of 13.6% as of June 2014, up from 12.6% in June 2013. Such financial fundamentals position FirstRand particularly well amongst the South African banks to weather the challenges in the economy over the next 12-18 months.

- Nedbank Limited

The primary driver of the downgrade of Nedbank's deposit rating to Baa2 (stable) from Baa1 (on review for downgrade) is the bank's sovereign debt holdings that stood at 115% of its capital base as of August 2014. In view of the correlation between sovereign and bank credit risk, Nedbank's rating continues to be aligned with the rating of the government. As a secondary consideration, the rating action also reflects the rating agency's expectation that the challenges in the economy will exert some pressure of the bank's financial performance in the near term.

Moody's expects the bank's strong H1 2014 performance, with 24% year-on-year increase in profit for the period, to moderate over the next 12-18 months due to higher loan impairments and in view of the bank's flat pre-provision income (operating income minus operating expenses) during H1 2014. Nedbank's H1 2014 profits were mainly driven by the 30% decline in its impairment charges on loans and advances on the back of strong collections and client rehabilitations.

Moody's considers that the reduction in the bank's NPL ratio to 2.8% in June 2014 from 3.5% in June 2013, and the increase in the overall provisioning coverage of NPLs to 66% in June 2014, from 59% in June 2013, better positions the bank for the current economic slowdown, supporting its stable outlook. Despite Nedbank Group's - the holding company of the bank - recent acquisition of a 20% stake in Ecobank Transnational Incorporated (a bank with significant presence in the rest of Africa), the bank's CET1 ratio of 10% as of June 2014 has not been negatively impacted. The rating agency expects the bank's CET1 ratio to increase to around 11% by year-end, following a dividend payment by one of the bank's subsidiaries and through retained earnings.

- Investec Bank Ltd

Investec's deposit rating downgrade to Baa2 (stable) from Baa1 (on review for downgrade) is mainly driven by its high sovereign exposure in the form of government debt securities, which represented a high 167% of its capital base as of August 2014. Accordingly, Investec Bank's rating continues to be aligned with the rating of the government in view of the correlation between sovereign and bank credit risk. In addition, the rating downgrade also takes into account the anticipated pressures on the bank's financial performance (14.5% year-on-year increase in profit after tax for the year-end March 2014) in view of the economic conditions in South Africa. Nonetheless, Moody's expects the downside risks on the bank's credit profile to be restrained in view of its client base profile, which is geared towards high net worth individuals that are less vulnerable and have alternative sources of income.

Among the large South African banks, Investec reports the lowest credit loss ratio (0.44% in March 2014) and NPLs (2.3% in March 2014), which the rating agency expects to continue to be the case. Moody's said that the bank's CET1 ratio of 10.3% as of March 2014 is supported by its adequate leverage ratio of 7.2% and its conservatively calculated risk-weighted assets that comprised a high 79% of total assets in March 2014 compared to an average 51% for the other four banks as of June 2014.

The bank's ratings and stable outlook also reflect the bank's high core liquidity and comfortable funding profile, balanced against its high property-related exposures and lower margins and profitability metrics than its peers.

WHAT COULD MOVE THE RATINGS UP/DOWN

The banks' ratings could be downgraded if operating conditions worsen more than currently anticipated, leading to significantly higher loan loss provisions that prompt deterioration in the banks' earnings and capital metrics that exceed the rating agency's expectations. Although not anticipated, as indicated by the stable outlook on the sovereign rating, any further deterioration in the creditworthiness of South Africa would also exert downward pressure on the banks' ratings, in view of their sizeable holdings of sovereign debt securities.

Conversely, any upwards rating momentum of the banks' ratings is contingent on any possible upgrade of the sovereign rating, which acts as a constraint to the banks' baseline credit assessments, combined with strengthened financial performance from the banks.

RATINGS AFFECTED BY TODAY'S ACTIONS

The Standard Bank of South Africa Limited

-- The local-currency and foreign-currency long-term deposit ratings have been downgraded to Baa2 from Baa1.

-- The provisional foreign-currency senior unsecured EMTN programme rating has been downgraded to (P)Baa2 from (P)Baa1.

-- The national-scale long-term deposit rating has been downgraded to A1.za from Aa3.za.

The following ratings were confirmed:

-- The standalone bank financial strength rating (BFSR) of C-, although the equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1.

-- The local-currency and foreign-currency short-term deposit ratings of P-2, as well as the national-scale short-term deposit rating of P-1.za.

-- The BFSR and long-term global scale ratings have a stable outlook.

+++++++++++++++

Standard Bank Group

-- The local-currency and foreign-currency issuer ratings have been downgraded to Baa3 (Stable) from Baa2 (on review for downgrade).

+++++++++++++++

Standard Bank Plc

-- The local-currency and foreign-currency deposit ratings have been downgraded to Baa3/P-3 from Baa2/P-2.

-- The provisional senior unsecured debt rating of its MTN programme has been downgraded to (P)Baa3 from (P)Baa2.

-- The subordinated debt rating has been downgraded to Ba1 from Baa3 and the junior subordinated debt rating has been downgraded to Ba2(hyb) from Ba1(hyb).

-- All ratings remain on review with direction uncertain.

+++++++++++++++

Absa Bank Limited

-- The local-currency and foreign-currency long-term deposit ratings have been downgraded to Baa2 from Baa1.

-- The provisional foreign-currency senior unsecured EMTN programme rating has been downgraded to (P)Baa2 from (P)Baa1.

-- The provisional foreign-currency legacy subordinated rating has been downgraded to (P)Baa3 from (P)Baa2, and the provisional junior subordinated EMTN programme rating to (P)Ba1 from (P)Baa3.

-- The national-scale long-term deposit rating has been downgraded to A1.za from Aa3.za.

The following ratings were confirmed:

-- The BFSR of C-, although the equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1.

-- The local-currency and foreign-currency short-term deposit rating of P-2, as well as the national-scale short-term deposit rating of P-1.za.

-- The long-term global scale ratings have a stable outlook, while the BFSR has a negative outlook.

+++++++++++++++

FirstRand Bank Limited

-- The local-currency and foreign-currency long-term deposit ratings have been downgraded to Baa2 from Baa1.

-- The provisional foreign-currency senior unsecured EMTN programme rating has been downgraded to (P)Baa2 from (P) Baa1, and any issued foreign-currency senior unsecured debt has been downgraded to Baa2 from Baa1.

-- The provisional local-currency senior unsecured domestic MTN programme rating has been downgraded to (P)Baa2 from (P) Baa1.

-- The national-scale long-term deposit rating and the national-scale senior unsecured programme ratings have been downgraded to A1.za from Aa3.za.

-- The provisional local-currency junior subordinated MTN programme rating has been downgraded to (P)Ba1 from (P)Baa3, as well as any issued local-currency legacy subordinated debt has been downgraded to Baa3 from Baa2 and junior subordinated debt has been downgraded to Ba1(hyb) from Baa3(hyb).

-- The national-scale ratings for legacy subordinated debt has been downgraded to A2.za from A1.za and the junior subordinated MTN program rating has been downgraded to A3.za from A2.za. Any issued national-scale junior subordinated debt has been downgraded to A3.za(hyb) from A2.za(hyb).

-- The provisional local-currency Basel III-compliant subordinated debt ratings of the bank's domestic MTN programme has been downgraded to (P)Ba1 from (P)Baa3, as well as any issued local-currency Basel III-compliant subordinated debt been downgraded to Ba1 from Baa3.

-- Foreign-currency subordinated MTN programme rating has been downgraded to (P)Ba1 from (P)Baa3

-- The national-scale ratings for Basel III-compliant subordinated debt, and any issued national-scale Basel III-compliant subordinated debt been downgraded to A3.za from A2.za.

The following ratings were confirmed:

-- The BFSR of C-, although the equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1.

-- The local-currency and foreign-currency short-term deposit ratings of P-2, as well as the national-scale short-term deposit rating of P-1.za.

-- The provisional short-term MTN programme rating of (P)P-2 and national-scale short-term rating of P-1.za.

-- The commercial paper rating of P-2.

-- The BFSR and long-term global scale ratings have a stable outlook.

+++++++++++++++

Nedbank Limited

-- The local-currency and foreign-currency long-term deposit ratings have been downgraded to Baa2 from Baa1.

-- The provisional foreign-currency senior unsecured EMTN programme has been downgraded to (P)Baa2 from (P) Baa1.

-- The provisional foreign-currency legacy subordinated EMTN programme rating has been downgraded to (P)Baa3 from (P)Baa2, as well as any issued foreign-currency legacy subordinated debt has been downgraded to Baa3 from Baa2.

-- The national-scale legacy subordinated debt rating has been downgraded to A2.za from A1.za, and the hybrid Tier 1 rating has been downgraded to Baa1.za(hyb) from A3.za(hyb).

-- The national-scale long-term deposit rating and the national-scale senior unsecured rating have been downgraded to A1.za from Aa3.za.

The following ratings were confirmed:

-- The BFSR of C-, although the equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1.

-- The local-currency and foreign-currency short-term deposit rating of P-2, as well as the national-scale short-term deposit rating of P-1.za.

-- The BFSR and long-term global scale ratings have a stable outlook.

+++++++++++++++

Investec Bank Ltd

-- The local-currency and foreign-currency long-term deposit ratings have been downgraded to Baa2 from Baa1.

-- The national-scale long-term deposit rating has been downgraded to A1.za from Aa3.za.

-- The provisional foreign-currency senior unsecured EMTN programme rating has been downgraded to (P)Baa2 from (P)Baa1, and any issued foreign currency senior unsecured debt has been downgraded to Baa2 from Baa1.

-- The provisional legacy subordinated programme rating has been downgraded to (P)Baa3 from (P)Baa2.

The following ratings were confirmed:

-- The BFSR of C-, although the equivalent baseline credit assessment (BCA) was lowered to baa2 from baa1.

-- The local-currency and foreign-currency short-term deposit rating of P-2, as well as the national-scale short-term deposit rating of P-1.za.

-- The BFSR and long-term global scale ratings have a stable outlook.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Banks published in July 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

At the end of June 2014, Standard Bank Group had total assets of ZAR1,771 billion ($167 billion), The Standard Bank of South Africa Limited had total assets of ZAR1,050 billion ($99 billion), FirstRand Bank Limited had total assets of ZAR851.2 billion ($80 billion), Absa Bank Limited had total assets of ZAR811 billion ($76 billion), and Nedbank Limited had total assets of ZAR726 billion ($68 billion). At the end of March 2014, Investec Bank Limited had total assets of ZAR303 billion ($29 billion). All banks are headquartered in Johannesburg, South Africa. Standard Bank Plc had total assets of $18.5 billion as of June 2014, headquartered in London, UK.

Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in June 2014 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings".

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Kanika Business Centre
319 28th October Avenue
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Yves J Lemay
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Kanika Business Centre
319 28th October Avenue
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades five South African banks' deposit ratings to Baa2; outlooks stable
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Moodys.com