Download Category: Corporates

JSE-listed Octodec Investments Limited (“Octodec” or “the REIT”) is a medium-scale fund comprising 254 properties across a range of commercial segments and residential assets. Its acquisition of the entire share capital of Premium Properties Limited (“Premium”) in 2014 saw the combination of three separate property holding entities (Octodec, Premium and IPS Investments Proprietary Limited) with common ownership and management. City Property Administration (Pty) Limited (“City Property”) is the REIT’s asset and property management company, with the relationship governed by renewable management agreements. City Property is owned by the Wapnick family, which along with the directors, holds a 37% interest in the REIT. Octodec is managed as a separate entity, operating at arm’s length in respect of contracts with related entities, whilst deriving competitive advantages from the expertise and specialised services developed by the group.

eThekwini is a Category A municipality located on South Africa's east coast in KwaZulu-Natal (“KZN”). The Metro encompasses Durban, the third-largest city in the country, and is home to Africa's busiest port, giving key access to the rest of sub-Saharan Africa. Its land area is comparatively larger than that of other South African cities, with a population estimated at approximately 4 million. Durban is also one of the country’s' leading domestic tourist destinations.

JSE-listed AECI is a leading producer and distributor of commercial explosives and chemical related products, including technical services. The group caters to a range of downstream sectors, including mining, manufacturing, agriculture and road construction. During FY20, the group realigned its operational segments into four strategic pillars, with the Food & Beverage segment (previously reported separately) integrated with the Chemicals segment and Animal Health transferred from Chemicals to Agri Health.

• Mining: This segment offers a mine-to-mineral solution internationally and is underpinned by the group’s expertise and long history in the production of explosives and related initiating products. It also produces surfactants for explosives manufacture and supplies metal extraction chemicals and tailings treatment.
• Water: This segment provides water treatment solutions across Sub-Saharan Africa.
• Agri Health: This segment produces crop protection and nutrients providing farmers with the means to improve their crop yield. In addition, it is also responsible for the production of specialty animal health products, as well as value added services, including agrochemical formulation. Production is geographically diversified across Africa, Europe and the USA.
• Chemicals: Various businesses supplying raw materials to a range of end-markets in the food and beverage, manufacturing, road infrastructure and general industrial sectors mainly in South Africa, but also in other Southern African countries.

JSE-listed Sappi Limited (“Sappi” or “the group”) is an internationally diversified wood fibre manufacturer focused on sustainable product solutions that include dissolving wood pulp (“DWP”), packaging, a range of specialised paper offerings, as well as biomaterials and biochemicals. The group continues to invest in a vertically integrated model that supports Sappi’s competitive position internationally. Markets for its products span 150 countries, albeit with no single customer accounting for more than 10% of revenue or trade debtors.

The Issuer ratings of Sappi Southern Africa Limited (“SSA” or “the company”) are premised on GCR’s view of the creditworthiness of Sappi, as SSA is considered an essential operating subsidiary of the group. Our view is based on Sappi’s 100% ownership of SSA, operational integration, and SSA’s history of strong cash flows. As Sappi does not guarantee SSA’s debt obligations, we have not equalised its credit risk score to that of Sappi until there is demonstrated capital support to the company. Conversely, a weakening of the group’s credit risk profile would result in a downgrade of SSA’s Issuer ratings.

King Cetshwayo District Municipality (formerly known as uThungulu District Municipality), is one of 10 category C municipalities in the KwaZulu-Natal (“KZN”) province of South Africa. The District encompasses the category B municipalities of uMhlathuze, Nkandla, uMlalazi, Mthonjaneni and Umfolozi. As the Water Service Authority, (except for uMhlatuze), the District’s core mandate is to provide and manage infrastructure that caters for basic water, especially in the rural areas.