/ 29 September 1999

NEDCOR, SBIC RATINGS ON HOLD

RATINGS agency Fitch IBCA announced on Wednesday that it has put its international individual ratings for Standard Bank Investment Corp (SBIC) and Standard Bank of South Africa (SBSA) of “B/C” and its national long-term ratings for Standard Bank of South Africa and Nedcor Bank of “AA” on RatingAlert evolving. The proposed merger between the two entities is at the root of FitchIBCA’s uncertainty. Fitch IBCA said the outcome of the proposed merger talks is “uncertain at the moment with Nedcor due to make a presentation to the SBIC’s Board on the 7th of October 1999,” the ratings agency said. “A merger between two of South Africa’s big four banking groups would create the country’s largest banking group with an asset market share of over 35% and a significant concentration of South African banking risk,” leading to re-evaluations of the insitution’s risk profile.