GCR places Adcorp Holdings Limited’s Issuer and Group 1 Note ratings “under review”
Johannesburg, 30 November 2017 – Global Credit Ratings (“GCR”) has today placed Adcorp Holdings Limited’s Issuer ratings and Group 1 Note ratings “under review”. The following listed Group 1 Notes remain outstanding:
R400m five-year Secured Term Notes; stock code ADCB01; maturing 08 March 2018 (“R400m five-year Secured Term Notes”);
R100m three-year Secured Term Notes; stock code ADCB05; maturing 04 December 2018 (“R100m three-year Secured Term Notes”).
While the ratings were scheduled to be reviewed by 30 November 2017, and GCR is far advanced with the process, cognisance has been taken of management’s plans to redeem all notes outstanding under its R2bn domestic medium-term note programme early, in pursuit of a funding profile better suited to Adcorp’s operating model, and following a breach of certain applicable covenants. In this regard, GCR awaits the outcome of the Series 1 noteholders’ meeting scheduled for the 30th of November 2017, and will release the outcome of its ratings review by the 15th of December 2017.
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.