Announcements

GCR affirms the A1(ZA)(sf) rating of the notes issued by iNkotha Investments

GCR has affirmed the ‘A1(ZA)(sf)’ short term credit rating of the notes (the ‘Notes’) issued or to be issued by iNkotha Investments (RF) Limited (the ‘Issuer’) from time to time under its R10bln domestic call bond fund programme (the ‘Transaction’).

Concurrently, GCR has affirmed the ‘A1(ZA)’ short term senior unsecured credit rating of the Issuer. The rating affirmations follow a meeting held with the administrator (Rand Merchant Bank) of the Issuer, whereby the satisfactory performance of the Transaction was confirmed. The administrator has confirmed operation within the Transaction parameters.

The Issuer is a Rand Merchant Bank managed structured funding vehicle that advances rand denominated overnight call loans to South African corporates and South African subsidiaries/branches of international corporates. The Issuer may also purchase rand denominated call bonds with a tailored call/put mechanism attached.

The Issuer has been set up as a bankruptcy remote vehicle and may only perform activities in accordance with the transaction documents. The secured creditors sign non-petition and limited recourse language for the benefit of the Issuer. The risks relating to the Notes and the Issuer are therefore materially the same. This results in the according of the same short term rating to iNkotha as that accorded to the Notes.

For more information on the Transaction, please refer to the new issue report entitled “iNkotha Investments Limited”, published in November 2010. The new issue report is available to subscribers of GCR’s structured finance subscription service. GCR has analysed the Transaction by applying its Global Structured Finance Rating Criteria and its Criteria for Rating Corporate Entities. The criteria reports are available for download on the website.

Contacts
Eyal Shevel, Head of Corporates, Johannesburg, shevel@globalratings.net, +27 11 784 1771.
Tinashe Nyautore, Johannesburg, nyautore@globalratings.net, +27 11 784 1771.

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