Strategically important subsidiary of Barclays Bank PLC Strong position in the retail banking market in South Africa Satisfactory financial performance and capitalization Adequate funding and liquidity Higher-than-average social and operational risks in South Africa Slowing economic growth and the deteriorating credit environment weaken asset quality Structurally high liquidity risks of the South African banking sector, reflecting a low savings rate The public information ('pi'; unsolicited) rating on Absa bank Ltd. (ABSA) reflects the bank's strategic importance to its majority shareholder U.K-based Barclays Bank PLC (Barclays; AA/Watch Neg/A-1+), its strong retail position in the South African market, and satisfactory financial profile and capitalization. The bank also benefits from adequate funding and liquidity. The ratings are constrained by the higher-than-average social and
