The public information ('pi') rating on Absa Bank Ltd. (Absa Bank) is based on the bank's strong retail position in the South African market, its improving financial profile, and adequate funding. The rating also reflects the important role the bank plays within Absa Group Ltd. (Absa; not rated). The rating continues to be constrained by the economic and social challenges of operating in South Africa (foreign currency, BBB/Stable/A-3; local currency, A/Stable/A-1) and the increasing competitive environment. Absa Bank is wholly owned by Absa, one of the largest financial services groups in South Africa and accounting for more than 80% of group assets. At March 31, 2004, Absa's asset base increased to South African rand (R) 313.4 billion ($48.5 billion, at
