Announcements

Commissioner Street No. 4 (RF) Ltd – Ratings Affirmed with Positive Outlook

Johannesburg, 30 October 2014 — Global Credit Rating Co. (Pty) Ltd (‘GCR’) has affirmed the final, public ‘AA-(ZA)(sf)’ Long Term credit ratings and accorded a Positive Outlook to the below mentioned senior secured credit linked notes (‘Notes’):

Class A-3

R345,800,000

MEFSA3

Secured Floating Rate Notes

due 5 October 2016

AA-(ZA)(sf)

Positive Outlook

Class A-3

R60,000,000

MEFSB3

Secured Fixed Rate Notes

due 5 October 2016

AA-(ZA)(sf)

Positive Outlook

Class A-4

R250,000,000

MEFSA4

Secured Floating Rate Notes

due 5 January 2019

AA-(ZA)(sf)

Positive Outlook

Class A-4

R65,000,000

MEFSB4

Secured Fixed Rate Notes

due 5 January 2019

AA-(ZA)(sf)

Positive Outlook

Class A-5

R215,000,000

MEFSB5

Secured Fixed Rate Notes

due 5 January 2022

AA-(ZA)(sf)

Positive Outlook

Class A-6

R465,716,739

MEFSA6

Secured Floating Rate Notes

due 5 July 2026

AA-(ZA)(sf)

Positive Outlook

RATING RATIONALE

The Issuer acquired the rights, title and interest in two loans (‘Loans’) provided by Absa Bank Limited to the Borrower through an outright cession.

The rating of the Notes is derived from the long term unsecured credit rating of the Borrower. The rating accorded to the Notes relates to timely payment of interest and principal. The rating excludes an assessment of the ability of the Issuer to pay any (early repayment) penalties. If the rating of the Borrower changes, the rating of the Notes may also change. The rating of the Notes may also change if relevant risk presenting entities are not considered to be of sufficient credit quality anymore and no appropriate remedial action is undertaken when necessary. The Class A-1 (MEFSA1) and A-2 Notes (MEFSA2) were paid in full on 5 October 2014. For more information please refer to the Commissioner Street No.4 (RF) Limited Metro Funding Series 2011-1 Surveillance Report published on 30 October 2014.

RATINGS HISTORY

Stock code

Stock code

Initial Rating

Long Term Rating

Short Term Rating

Outlook

Class A-1 Notes

MEFSA1

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-2 Notes

MEFSA2

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-3 Notes

MEFSA3

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-3 Notes

MEFSB3

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-4 Notes

MEFSA4

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-4 Notes

MEFSB4

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-5 Notes

MEFSB5

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Class A-6 Notes

MEFSA6

7 November 2011

AA-(ZA)(sf)

n.a

Stable

Stock code

Stock code

Last Rating

Long Term Rating

Short Term Rating

Outlook

Class A-1 Notes

MEFSA1

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-2 Notes

MEFSA2

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-3 Notes

MEFSA3

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-3 Notes

MEFSB3

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-4 Notes

MEFSA4

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-4 Notes

MEFSB4

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-5 Notes

MEFSB5

30 October 2013

AA-(ZA)(sf)

n.a

Stable

Class A-6 Notes

MEFSA6

30 October 2013

AA-(ZA)(sf)

n.a

Stable

ANALYTICAL CONTACTS

Corné Els
Structured Finance Analyst
CorneE@globalratings.net
+27 11 784 1771

Committee Chairperson
Emma-Jane Fulcher
Head: Structured Finance Ratings
fulcher@globalratings.net
+27 11 784 1771

APPLICABLE METHODOLOGIES

Global Credit-Linked Note and Repackaging Vehicle Rating Criteria – May ’14;
Global Master Criteria for Rating Public Entities – Apr ’14;

RATING LIMITATIONS AND DISCLAIMERS

ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://GLOBALRATINGS.NET/UNDERSTANDING-RATINGS. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT HTTP://GLOBALRATINGS.NET/RATINGS-INFO. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE UNDERSTANDING RATINGS SECTION OF THIS SITE.

SALIENT FEATURES OF ACCORDED RATINGS

GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the rating was based solely on the merits of the rated entity, security or financial instrument being rated; c.) such rating was an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the rating is for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.

The Arranger participated in the rating process via face-to-face meetings, teleconferences and other written correspondence. Furthermore, the quality of info received was considered adequate and has been independently verified where possible.

The rating/s above were solicited by the Issuer of the Transaction; GCR has been compensated for the provision of the ratings.

The credit rating/s has been disclosed to the Arranger with no contestation of the rating.

The information received from the Arranger and other reliable third parties to accord the credit ratings included the final executed signed transaction documents together with the relevant legal and tax opinions, a spread sheet with expected transaction cash flows, the transaction investor reports for 7 July 2014 and 6 October 2013, Services Agreement between Absa Capital and Maitland Trust Limited as well as the Issuer’s financial statements as 31 December 2013.

GLOSSARY OF TERMS/ACRONYMS USED IN THIS DOCUMENT AS PER GCR’S STRUCTURED FINANCE GLOSSARY

Cash Flow

A financial term for monetary changes in operations, investing and financing activities.

Credit Rating

A rating accorded to the performance of either ultimate or timely payment of obligations.

Credit Rating Agency

A party that provides an opinion on the credit quality of assets, debt securities and companies.

Credit Risk

The probability or likelihood that a borrower will not meet its debt obligations. Credit Risk can further be separated between current credit risk (immediate) and potential credit risk (deferred).

Credit-linked Note

Structured Credit Security that combines a bond or loan with a credit derivative or links it to a rated counterparty. The normal coupon repayments remains unchanged unless a credit event associated with a pre-specific reference obligation occur. CLN is similar to a Securitisation, except there are no assets transferred to the securitisation Vehicle. Either a securitisation vehicle or Issuer can issue a CLN.

Fixed Rate Notes

Debt securities that have a fixed interest rate over its.

Floating Rate Notes

Debt securities that have a periodic interest rate reset in relation to the reference rate, i.e. JIBAR.

JIBAR

Johannesburg Interbank Agreed Rate. A reference rate.

Lien

A right of retention of someone else’s property due to expensed money or labour on property acquires a lien until payment is made.

Liquidity Risk

The risk that a financial instrument cannot be traded on its market price due to the size of the market.

Long Term Rating

A credit rating based on the opinion of the ability to repay long term (more than a year) obligations.

Property

Movable or immovable asset.

Reference Rate

A rate that is the basis of the calculation such as JIBAR.

Securitisation Vehicle

See Special Purpose Vehicle.

Short Term Rating

A credit rating based on the opinion of the ability to honour short term (less than a year) obligations.

Special Purpose Vehicle

A Special Purpose Vehicle that has been created to guarantee the performance of the obligations of the Issuer that sold its assets to the Guarantee SPV.

Stock Code

A unique code allocated to a publicly listed security.

Structured Finance

A method of raising funds in the capital markets. A Structured Finance transaction is established to accomplish certain funding objectives whist reducing risk.

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ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://GCRRATINGS.COM. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT WWW.GCRRATINGS.COM/RATING_INFORMATION. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR's CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THIS SITE.

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