GCR places the servicer quality* ratings of Real People Investment Holdings Limited’s ‘Under Rev
Johannesburg, 31 July 2017 — Global Credit Ratings (“GCR”) has placed the primary and special servicer quality ratings assigned to Real People Investment Holdings Limited (“Real People”) of SQ3+(ZA) and SQ2-(ZA) respectively, ‘Under review’. While the ratings recently expired, GCR expects to publicly release the updated rating results by 31 October 2017.
The ‘Under review’ status of the ratings follow Real People’s initiation of capital/debt restructuring discussions with investors (resulting in a debt standstill until 31 August 2017). Furthermore, and related to the above, the FY17 audited financial statements have not been publicly released. While servicing performance has been broadly stable in FY17, GCR considers that the group’s weakened profitability; heightened funding/liquidity risks and capital shortage result in uncertainty over its continued sustainability, which is a critical rating consideration. Consequently, the rating outcome will be significantly influenced by the outcome of the investor engagement currently underway.
* Servicer quality ratings are classified as non-credit ratings (refer to GCR’s published rating scales and definitions).
NATIONAL SCALE RATINGS HISTORY
Initial rating (June 2009)
Servicer quality (combined): SQ2(ZA)
Rating outlook: Stable
Initial rating (December 2013)
Last rating (April 2017)
Primary Servicer: SQ2(ZA)
Primary Servicer: SQ3+(ZA)
Special Servicer: SQ2+(ZA)
Special Servicer: SQ2-(ZA)
Rating outlooks: Stable
Rating outlooks: Negative
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