The public information ("pi"; unsolicited) rating on Absa Bank Ltd. reflects the bank's strategic importance to its majority shareholder U.K.-based Barclays Bank PLC (Barclays; AA/Stable/A-1+), 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 benefiting from integration into Barclays' strong risk-management culture, and from Barclays' value-based management framework and economic profit targeting. In the first half of 2007, the cooperation with Barclays had already resulted in gross cost savings of South African rand (ZAR) 650 million through value-adding
