Credit Ratings Update - BIBAW
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Bond issuer code: BIBAW)
(“Barloworld” or “the group”)
On 7 November 2019, Moody’s affirmed Barloworld Limited’s (“Barloworld”) long-term Global Scale Ratings
of Baa3, and long-term National Scale Ratings of Aa1.za, however announced that the outlook on the ratings
of Barloworld had changed from stable to negative following the change of outlook on the Baa3 sovereign
rating of South Africa.
Moody’s reported that with close to 75% of revenue and operating profit derived from South Africa,
Barloworld is intrinsically linked to the macro environment of South Africa and thus an upgrade is unlikely
unless the South African government bond rating is also upgraded.
In our view, Barloworld’s earnings potential is not solely linked to South Africa with our offshore investments
providing some geographic diversification. We have a robust strategy (fix, optimize and grow) in place,
including a group-wide business transformation initiative, that is expected to deliver incremental value in spite
of the macroeconomic dynamics.
The full Moody’s rating report on Barloworld will be available online at
Further details are available on Moody’s website or their press release.
08 November 2019
Absa Bank Limited (acting through its Corporate and Investment Bank division)
Date: 08/11/2019 04:15:00
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