The public information ('pi') rating on Absa Bank Ltd. (Absa Bank) reflects its strategic importance to its new majority shareholder U.K.-based Barclays Bank PLC (Barclays; AA/Stable/A-1+), its strong retail position in the South African market, solid financial profile, and dominant position within Absa Group Ltd. (Absa), one of the largest financial service providers in South Africa. The rating continues to be constrained by the socioeconomic and competitive challenges of operating in South Africa and growing competition. Absa is expected to benefit from integration into Barclays' strong risk-management culture, and from Barclays' value-based management framework and economic profit targeting. The integration is not without execution risk, however. The dominant entity in the group, Absa Bank accounted for more than 82% of
