8 May 2014 — Global Credit Rating Co. (“GCR”) has affirmed the final, public credit ratings and outlooks accorded to the following Series 2 Notes issued by South African Securitisation Programme (RF) Limited (“SASP”) Series 2 on 8 November 2013, following a satisfactory review of performance.
• Class A1 Notes, stock code LRFA1, due 20 November 2016, ‘AA(ZA)(sf)’, Outlook Stable.
• Class B1 Notes, stock code LRFB1, due 20 November 2016, ‘A(ZA)(sf)’, Outlook Stable.
• Class C1 Notes, stock code LRFC1, due 20 November 2016, ‘BBB(ZA)(sf)’, Outlook Stable.
SASP is a public securitisation of rental and lease financed assets originated by Sasfin through Sunlyn Rentals Proprietary Limited (“Sunlyn”) and other entities approved by Sasfin which include disclosed suppliers and super non-disclosed suppliers (“SNDs”).
The rating of the Series 2 Notes is derived by applying GCR’s Global Consumer ABS Rating Criteria and Global Structured Finance Rating Criteria. GCR reviewed the performance of the Transaction for the period November 2013 to March 2014. GCR was provided with the applicable monthly Surveillance Reports for the term relating to the review period. For more information, please read the South African Securitisation Programme (RF) Limited – Series 2 May 2014 Surveillance Report published on 9 May 2014. The Surveillance Report is available to subscribers of GCR’s Structured Finance subscription service.
The final, public credit ratings accorded to the ‘AA(ZA)(sf)’ rated securities relate to timely payment of interest and ultimate payment of principal, whilst the ratings on all other securities relate to ultimate payment of interest and ultimate payment of principal. The ratings exclude an assessment of the ability of the Issuer to pay either any (early repayment) penalties or any default interest rate penalties.
Stock Code: LRFA1 Previous/initial Rating (8 November 2013): AA(ZA)(sf), Outlook: Stable
Stock Code: LRFB1 Previous/initial Rating (8 November 2013): A(ZA)(sf), Outlook: Stable
Stock Code: LRFC1 Previous/initial Rating (8 November 2013): BBB(ZA)(sf), Outlook: Stable
Structured Finance Analyst
+27 11 784 1771
Sector Head: Structured Finance Ratings
+27 11 784 1771
APPLICABLE METHODOLOGIES AND RELATED RESEARCH
• Global Structured Finance Rating Criteria – February 2014
• Global Consumer ABS Rating Criteria – April 2014
• South African Securitisation Programme (RF) Ltd Structured Financial Equipment Lease Securitisation Analysis New Issuance Report – November 2013
• Sasfin Holdings Limited South African Financial Institution Analysis – June 2013
RATING LIMITATIONS AND DISCLAIMERS
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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 Issuer and the Arranger with no contestation of the rating.
The information received from the Arranger to accord the credit ratings included the Surveillance Reports relating to the underlying equipment lease portfolio for the period November 2013 to March 2014.
CREDIT RATINGS ISSUED AND RESEARCH PUBLICATIONS PUBLISHED BY GCR, ARE GCR’S OPINIONS, AS AT THE DATE OF ISSUE OR PUBLICATION THEREOF, OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. GCR DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL AND/OR FINANCIAL OBLIGATIONS AS THEY BECOME DUE. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: FRAUD, MARKET LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND GCR’S OPINIONS INCLUDED IN GCR’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND GCR’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND GCR’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL OR HOLD PARTICULAR SECURITIES. NEITHER GCR’S CREDIT RATINGS, NOR ITS PUBLICATIONS, COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. GCR ISSUES ITS CREDIT RATINGS AND PUBLISHES GCR’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING OR SALE.
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GCR affirms final, public credit ratings and outlooks accorded to the Series 2 Notes Issued by South African Securitisation Programme (RF) Limited.