GCR extends ‘Under Review’ of Real People Investment Holdings Limited.
Johannesburg, 31 October 2017 — Global Credit Ratings (“GCR”) has extended the ‘Under review’ applicable to Real People Investment Holdings Limited’s (“Real People”, “the group”) national scale ratings of CCC(ZA) and C(ZA) in the long term and short term respectively, which expired on 31 October 2017. Furthermore, GCR has extended the ‘Under review’ applicable to Real People’s primary and special servicer quality* ratings of SQ3+(ZA) and SQ2-(ZA) respectively, which also expired on 31 October 2017.
The extension of the ‘Under review’ status of the ratings follows an extension of Real People’s debt standstill agreement with creditors to 30 November 2017 to provide the group with sufficient time to implement its capital restructure (“the voluntary process”). Furthermore, and related to the above, the outcome of the voluntary process currently underway will have a significant bearing on Real People’s sustainability, which is a critical rating consideration. As such, GCR expects to publicly release an updated market alert regarding the group’s ratings subsequent to the outcome of the voluntary process.
* Servicer quality ratings are classified as non-credit ratings (refer to GCR’s published rating scales and definitions).
NATIONAL SCALE RATINGS HISTORY
Initial rating (November 2011)
Initial rating (June 2009)
Long term: BBB(ZA); Short term: A2(ZA)
Servicer quality (combined): SQ2(ZA)
Rating outlook: Stable
Last rating (March 2017)
Initial rating (December 2013)
Long term: CCC(ZA); Short term: C(ZA)
Primary Servicer: SQ2(ZA)
Special Servicer: SQ2+(ZA)
Rating outlooks: Stable
Last rating (April 2017)
Primary Servicer: SQ3+(ZA)
Special Servicer: SQ2-(ZA)
Rating outlooks: Negative
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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