Summary: Absa Bank Ltd. Dec 09
- ID: 2030787
- December 2009
- Standard & Poors
The public information ('pi'; unsolicited) rating on Absa Bank Ltd. reflects the bank's strategic importance to its majority shareholder, U.K.-based Barclays Bank PLC (Barclays; AA-/Negative/A-1+), its strong market position in South African retail banking, and strong risk management and controls. The ratings are constrained by the higher-than-average social and operational risks in South Africa (foreign currency rating BBB+/Negative/A-2, local currency rating A+/Negative/A-1, South African National Scale Rating zaAAA/zaA-1), declining asset quality, aggressive provisioning amid the deteriorated credit cycle, and above average structural liquidity risks. The long-term rating benefits from uplift over its stand-alone credit profile due to parental support. Standard & Poor's Ratings Services considers Absa to be a strategically important subsidiary of Barclays because of the high level of...
Companies mentioned in this report are:
- Absa Bank Ltd.
- Barclays Bank PLC
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