Moody's rates Imperial Bank Aa3.za

Moody's Investors Service said it assigned an Aa3.za long-term national scale issuer rating and a Prime-1.za short-term national scale issuer rating to Imperial Bank Ltd.

The agency said that Imperial Bank is one of South Africa's leading asset finance companies - with its largest division, Motor Finance Corp., commanding a 15% market share of passenger motor finance - and that the bank maintains strong profitability and efficiency indicators, has strong risk management policies, benefits from an experienced management team and enjoys a very high probability of support from its parent, Nedbank Group, in case of need.

Imperial Bank's ratings additionally reflect its monoline status, which constrains its ability to develop its franchise value, and its aggressive capital structure strategy, whereby it aims to keep "surplus" capital at minimum levels due to the shareholders' support as contained in the current memorandum of understanding, Moody's said.

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