Fitch Downgrades Stanbic Bank Kenya’s Outlook

Fitch Ratings has revised Stanbic Bank Kenya’s Outlook to negative from stable and affirmed the bank’s long term issuer default rating(IDR) at ‘BB-‘

This downgrade follows a similar action against the lender’s parent company South
African-based Standard Bank Group Limited to BB/Negative from BB+ Negative.

The rating agency views that the Kenyan business should be one notch below Standard Bank Group’s if country risks allowed.

Fitch mentioned the possibility that Stanbic Bank Kenya will require financial support
from the parent company, which has a 69 percent indirect shareholding in the bank.

The Kenyan subsidiary of Standard Bank Group is viewed as strategically important to the
Group’s Pan African expansion strategy.

Considered the largest economy in East Africa, Kenya offers an important growth opportunity
and market for the Standard Bank Group.

SBG has high level connections with the Kenyan business, including its participation in the
management of SBK, use of similar products, risk policies and processes as well as systems
and branding.

In 2019, Stanbic Bank Kenya accounted for 1.8 percent of the consolidated Standard Bank Group balance sheet.