Moody’s reaffirms Absa’s rating at A32012-06-29
Global ratings agency Moody’s today reaffirmed Absa’s deposit and debt ratings at A3, stating that its decision continues to be based on the group’s strong market position in South Africa and leading position in retail banking.
The report, issued subsequent to Absa’s voluntary trading update this week (26 June 2012), states that Absa enjoys “a good capitalisation buffer” and that its franchise-enhancing benefits derived from the Barclays majority ownership allows the group to leverage global knowledge, distribution and technology to further strengthen its franchise, especially within the corporate and investment banking space.
Moody’s reasserted the fact that its recent re-rating of Absa (announced on 22 June 2012)was not driven by a deterioration in Absa’s financial strength, but rather by the need to reflect a recent downgrade of parent company Barclays.
David Hodnett, Absa Group Financial Director, commented:“We are pleased that Moody’s recognised our strong retail banking franchise and that it has asserted its vote of confidence in Absa.”