OREANDA-NEWS. Fitch Ratings has affirmed Land and Agricultural Development Bank of South Africa's (Land Bank) ratings at National Long-term 'AA+(zaf)'; with Stable Outlook, National Short-term 'F1+(zaf)'and Support '2'.

The ratings have simultaneously been withdrawn due to commercial reasons.

KEY RATING DRIVERS

Land Bank's National Long-Term Ratings and Support Ratings reflect a high probability of sovereign support, given the bank's role as a state-owned development finance institution (DFI). The National Ratings are driven by South Africa's Local currency Issuer Default Rating of 'BBB' which is on Stable Outlook. On the national scale Land Bank's National Rating of 'AA+(zaf)' reflects lower perceived creditworthiness relative to the sovereign due to the absence of explicit guarantees for its issued debt. The Stable Outlook on Land Bank's National Rating reflects that on the sovereign.

Land Bank is a 100% state-owned DFI, incorporated by an Act of Parliament to provide financial services to the commercial farming sector, agri-business and farmers. It was established in 1912. Its mandate is land and agricultural development in South Africa. Fitch views Land Bank's remit as strongly aligned with government policy, supporting agrarian reform in the country and facilitating agricultural exports.