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Release Date: 22/01/2020 08:57
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BILB-Credit Rating Adjustment

The Land and Agricultural Development Bank of South Africa
(JSE Code: BILB)
(“the Land Bank”)

Land and Agricultural Development Bank of South Africa: Moody’s downgrades
Land Bank’s ratings to Ba1; outlook negative

                                                                          22 January 2020
On 21 January 2020, Moody's Investors Service, ("Moody's”) downgraded Land and
Agricultural Development Bank’s (Land Bank) issuer rating to Ba1 from Baa3/P-3 and its long
term national scale issuer rating (NSR) to from Moody’s confirmed the Land
Bank’s b1 Baseline Credit Assessment (BCA) and assigned a Corporate Family Rating (CFR)
of Ba1.

The ratings downgrade reflects Moody’s assessment that increased fiscal challenges suggest
that the South African government will be more selective in dispersing financial support to
state-owned enterprises, including Land Bank. The decision to downgrade Land Bank’s issuer
ratings is driven by a reduction in government support to uplift to three notches from four

The negative outlook reflects the potentially weakening capacity of the South African
government to support Land Bank in a case of need, as captured by the negative outlook
assigned to the sovereign rating.

The rating agency also acknowledges initiatives taken by Land Bank to strengthen governance
in light of generally heightened attention to South African state-owned enterprises. For Land
Bank, corporate governance remains key.

The Bank has noted Moody’s downgrade and continues to address the key areas mentioned
in the report.

The Rating Announcement is available on its website,

Land and Agricultural Development Bank of South Africa
Sydney Soundy, Acting Chief Executive Officer
Ryan Engle, Acting Chief Financial Officer
Rebecca Phalatse, General Manager: Marketing and Communications – Tel: 012 686 0921

Debt Sponsor
The Standard Bank of South Africa Limited

Date: 22-01-2020 08:57:00
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