Johannesburg, 31 October 2013 — Global Credit Rating Co. (“GCR”) has affirmed the final, public ‘AA(ZA)’ long term rating and Stable Outlook accorded to the senior secured notes (the ‘Senior Notes’) issued by Emira Property Fund (the ‘Issuer’) on 19 August 2011:
• ZAR 500m, Secured Term Notes, stock code EPF001, coupon 3M JIBAR + 1.400%.
The rating of the Senior Notes was derived by applying a notching approach, starting from the long term unsecured corporate credit rating of the Issuer. Based on the fundamentals and prospects of the Issuer, GCR has accorded the Issuer a long term ‘A(ZA)’ national scale corporate credit rating to the Issuer. The ratings of Senior Notes incorporate the recoveries from the properties ceded as security in this transaction and thus a rating uplift of three national scale notches deemed appropriate for the Senior Notes. The ratings accorded to the Senior Notes relate to the ultimate (as opposed to timely, akin to a loss severity rating therefore) repayment of the principal and interest.
+27 11 784 1771
Head of Structured Finance
+27 11 784 1771
APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Global Summary Structurally Enhanced Corporate Bonds Rating Criteria (October 2013)
Global Master Criteria for Rating Corporate Entities (April 2013)
Global Summary Criteria for Rating Property Funds (July 2013)
Emira Property Fund Corporate Analysis Report (July 2013)
Emira Property Fund R500m Secured Notes Surveillance Report (October 2012)
The ratings above were solicited by the Arranger of the Transaction; GCR has been compensated for the provision of the ratings.
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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 Issuer and 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 Issuer:
• 6 Year trading forecast;
• 12 Month Rolling Budget;
• Tenancy Schedule;
• Rent Roll Schedule;
• Property Valuation schedule.
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