Announcements Rating Alerts Structured Finance

Fox Street 3 (RF) Ltd: Ratings of all outstanding notes affirmed and simultaneously withdrawn following exercise of Originator Call Option

Rating Action

Johannesburg, 30 March 2020 – GCR Ratings (“GCR”) has affirmed and simultaneously withdrawn the following long-term issue ratings of the following Notes issued by Fox Street 3 (RF) Ltd (the “Issuer”), following their acquisition by the Originator (Investec Limited) on exercise of the Originator Call Option on 20 February 2020:

Security Class Stock Code Amount Outstanding Rating Class Rating Scale Rating Outlook
Class A5 Notes FS3A5 R 509,694,259 Long Term Issue National AAA((ZA)(sf)/WD(ZA)(sf) n.a.
Class B1 Notes FS3B1 R 155,000,000 Long Term Issue National AAA((ZA)(sf)/WD(ZA)(sf) n.a.
Class C1 Notes FS3C1 R 40,000,000 Long Term Issue National AAA((ZA)(sf)/WD(ZA)(sf) n.a.
Class D1 Notes FS3D1 R 90,000,000 Long Term Issue National AAA((ZA)(sf)/WD(ZA)(sf) n.a.

The Issuer has a Subordinated Loan of R173,787,320, which was never rated. The abovementioned ratings have been withdrawn for business reasons. Accordingly, GCR will no longer provide ratings or analytical coverage for the abovementioned.

Analytical Contacts

Primary analyst Yehuda Markovitz Structured Finance Analyst
Johannesburg, ZA YehudaM@GCRratings.com +27 11 784 1771
Secondary analyst Gary Nyoni Structured Finance Analyst
Johannesburg, ZA GaryN@GCRratings.com +27 11 784 1771
Sector head Yohan Assous Sector head: Structured Finance Ratings
Johannesburg, ZA Yohan@GCRratings.com +27 11 784 1771

Related Criteria and Research

Global Master Structured Finance Rating Criteria, updated Sep ’18,
Global Residential Mortgage Backed Securities Rating Criteria, updated Nov ’18,
Global Master Criteria for Rating Banks and Other Financial Institutions – May ’19,
GCR Rating Alert, South African Banks – Aug ’19.

Ratings History

Fox Street 3 (RF) Ltd

Security class Stock code Review Rating Class Rating scale Rating Outlook Date
Class A5 Notes FS3A5 Initial Issue Long Term National AAA(ZA)(sf) Stable Dec. 2015
Last Issue Long Term National AAA(ZA)(sf) Stable May 2019
Class B1 Notes FS3B1 Initial Issue Long Term National A+(ZA)(sf) Stable Dec. 2015
Last Issue Long Term National AAA(ZA)(sf) Stable May 2019
Class C1 Notes FS3C1 Initial Issue Long Term National A(ZA)(sf) Stable Dec. 2015
Last Issue Long Term National AAA(ZA)(sf) Stable May 2019
Class D1 Notes FS3D1 Initial Issue Long Term National BB+(ZA)(sf) Stable Dec. 2015
Last Issue Long Term National AAA(ZA)(sf) Stable May 2019

SALIENT POINTS OF ACCORDED RATINGS

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

The credit ratings have been disclosed to the Issuer and Arranger. The ratings above were solicited by, or on behalf of, the Issuer, and therefore, GCR has been compensated for the provision of the ratings.

The Issuer participated in the rating process via face-to-face management meetings, teleconferences and/or other written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible. The information received from the Issuer and other reliable third parties to accord the credit ratings included:

  • SENS Announcement of 17 March 2020
  • Investor report until 20 February 2020
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