GCR Withdraws Jasco Electronics Holdings Limited’s national scale ratings after affirming the ratings at CC(ZA);/C(ZA); Negative Outlook
Johannesburg, 02 March 2021– GCR Ratings (“GCR”) has Withdrawn the ratings on Jasco and will no longer be providing ratings coverage.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
Outlook / Watch
Jasco Electronics Holdings Limited
Long Term issuer
Short Term issuer
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.
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:
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