Fitch Downgrades FirstRand Bank's Hybrids on Criteria Change
Fitch Ratings-London/Johannesburg-08 February 2010: Fitch Ratings has today downgraded the National Long-term ratings of the hybrid capital instruments issued by South Africa-based FirstRand Bank Limited. This action follows the 29 December 2009 release of Fitch's revised hybrid notching criteria (for further information, see the criteria report entitled 'Rating Hybrid Securities', which is available at www.fitchratings.com).
FirstRand Bank Limited
ZAR440m cumulative upper tier 2 floating-rate notes: National Long-term rating downgraded to 'A+(zaf) ' from 'AA-(zaf)'
ZAR628m cumulative upper tier 2 mixed-rate notes: National Long-term rating downgraded to 'A+(zaf) ', from 'AA-(zaf)'
Additionally, as a consequence of the revised criteria allowing for greater rating differentiation at subordinated levels, Fitch no longer considers it meaningful to assign generic programme/shelf ratings at subordinated levels, and these have been withdrawn with immediate effect from Fitch's website. Fitch will continue to assign generic programme ratings at the senior unsecured level and will continue to rate subordinated programme/shelf issuance on a case-by-case basis upon review of the final terms and conditions. In South Africa this affects the rated programmes of the following banks:
Absa Bank Limited
FirstRand Bank Limited
Investec Bank Limited
Nedbank Limited
The Standard Bank of South Africa Limited
Applicable criteria, 'Rating Hybrid Securities', dated 29 December, 2009, are available on www.fitchratings.com.
Contact: Denzil De Bie, Anthony Walker, Frederick Fouche, Johannesburg, Tel: +27 11 380 0900.
Media Relations: Hannah Warrington, London, Tel: +44 (0) 207 417 6298, Email: hannah.warrington@fitchratings.com.
Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(zaf)' for National ratings in South Africa. Specific letter grades are not therefore internationally comparable.
Additional information is available on www.fitchratings.com.
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