Moody's Investors Service has today downgraded by one notch the senior debt and deposit ratings of five South African banks: Standard Bank of South Africa, Absa Bank Limited, FirstRand Bank Limited, Nedbank Limited, and Investec Bank Ltd. The downgrades are part of Moody's global assessment of the systemic support levels incorporated in banks' deposit and debt ratings.                                                     Moody’s also states: “Today's rating action is not driven by deterioration in the standalone financial strength or the financial performance of these five institutions and concludes Moody’s review for downgrade of these banks, initiated on 10 November 2011 (please see “Moody's reviews five South African banks for downgrade” for more information).” In addition, Moody’s also downgraded by one notch the subordinated debt instruments of the above-mentioned banks, in addition to African Bank Limited’s EMTN subordinated debt programme ratings. These downgrades reflect the removal of systemic support assumptions from the subordinated debt instruments of South African banks, prompted by Moody’s expectation that authorities will likely make greater use of their resolution tools to allow burden sharing with subordinated bondholders. The South African Reserve Bank (SARB) remains of the view that the South African banks are sound, well capitalised, profitable and providing investors with acceptable returns. The five South African banks mentioned above, weathered the global financial crisis well, have no exposures to the Sovereign debt crisis of certain troubled European countries and remain largely focussed on the Rand based South African economy. Thus the likelihood of systemic support required by these banks in the immediate future is considered to be low. In line with the Basel regulations, debt instruments forming part of banks’ capital adequacy requirements will be regarded by the Registrar of Banks as capital. However, as in the past, the SARB remains committed to the financial support of the systemically important South African banks. For further information contact:Hlengani MathebulaHead: Strategy and Communications DepartmentSouth African Reserve Bank082 448 9219​