Fitch affirms Absa

Fitch Ratings said it affirmed the long-term foreign-currency issuer default ratings of Absa Group Ltd. and its wholly owned subsidiary Absa Bank Ltd. at A.

The outlook is negative.

The affirmation reflects the bank's majority ownership by Barclays Bank plc (AA-/stable/F1+) and the extremely high probability of support that arises as a result of the U.K. bank's 55.5% ownership, according to the agency.

Absa's individual rating reflects its well-established domestic franchise, stable deposit base, surplus liquidity buffers and acceptable levels of tier 1 capital, the agency said.

These factors are balanced by the bank's weaker financial performance for the financial year ended Dec. 31, 2009 following significantly higher retail impairment charges and the impact of impairments against investments acquired following a single stock futures default, the agency noted.

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