Announcements Corporate Rating Alerts

GCR Withdraws Jasco Electronics Holdings Limited’s national scale ratings after affirming the ratings at CC(ZA);/C(ZA); Negative Outlook

Rating Action

Johannesburg, 02 March 2021– GCR Ratings (“GCR”) has Withdrawn the ratings on Jasco and will no longer be providing ratings coverage. This follows affirmation of the national scale long and short-term issuer ratings assigned to Jasco Electronics Holdings Limited (“Jasco”) of CC(ZA) and C(ZA) respectively; Negative Outlook.

Rated Entity / Issue Rating class Rating scale Rating Outlook / Watch
Jasco Electronics Holdings Limited Long Term issuer National WD
Short Term issuer National WD

Rating Rationale

The CC(ZA) rating and Negative Outlook reflects ongoing concerns as to the group’s financial viability, constrained by its weak earnings performance and excessive gearing. The potential benefits of the R76m to be received from the sale of Reflex Technologies to reduce debt, as well as to support working capital requirements has been noted. Jasco is also considering several other transactions to help meet its funding requirements to establish a more sustainable funding profile, although GCR views execution risk to be high.

Analytical Contacts

Primary analyst Eyal Shevel Sector Head: Corporate Ratings
Johannesburg, ZA Shevel@GCRratings.com +27 11 784 1771
Committee chair Sheri Morgan Senior Analyst: Corporate Ratings
Johannesburg, ZA Morgan@GCRratings.com +27 11 784 1771

Related Criteria and Research

Criteria for the GCR Ratings Framework, May 2019
Criteria for Rating Corporate Entities, May 2019
Ratings Scales, Symbols and Definitions, May 2019
GCR Country Risk Scores, Feb 2021
GCR Corporate Sector Risk Scores, July 2020
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Ratings History

Jasco Electronics Holdings Limited

Rating class Review Rating scale Rating class Outlook Date
Long Term Issuer Initial National BB-(ZA) Stable February 2013
Short Term Issuer Initial National B(ZA)
Long Term Issuer Last National CC(ZA) Rating Watch

Negative

September 2020
Short term Issuer Last National C(ZA)

Glossary

Long Term Rating See GCR Rating Scales, Symbols and Definitions.
Rating Outlook See GCR Rating Scales, Symbols and Definitions.
Short Term Rating See GCR Rating Scales, Symbols and Definitions.

SALIENT POINTS OF ACCORDED RATINGS

GCR affirms that a.) no part of the rating process was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument;.

The credit ratings have been disclosed to Jasco Electronics Holdings Limited. The ratings above were solicited by, or on behalf of, the rated entity, and therefore, GCR has been compensated for the provision of the ratings.

Jasco Electronics Holdings Limited participated in the rating process through management meetings, teleconferences and other written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible. The information received from Jasco Electronics Holdings Limited and other reliable third parties to accord the credit ratings included:

  • The audited financial results for June 2020
  • Four years of comparative audited numbers
  • Financial forecasts
  • Full details of funding facilities.
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