Moody's reaffirms Barclays Bank

Moody's Investors Service said it reaffirmed Barclays Bank's Aa1/P-1/A- ratings and their stable outlook following the bank's announcement that it has made a recommended offer to acquire a majority stake in South Africa's Absa (Baa1 stable/P-2stable /C- positive).

This reaffirmation follows the previous rating affirmation made on Sept. 24, 2004 at the time that Barclays made the initial announcement of the potential Absa acquisition.

In reaffirming Barclays' very high ratings and their stable outlook, Moody's noted that the planned cash transaction, while higher than the initial price range, will not undermine the UK group's very strong financial flexibility.

Barclays said that it believes the acquisition will be immediately accretive for its economic profits.

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