Announcements Rating Alerts Structured Finance

GCR withdraws the rating of the Class A1 Notes issued by Fox Street 7 (RF) Ltd following their full capital redemption

Rating Action

Johannesburg, 30 June 2021 – GCR Ratings (“GCR”) has withdrawn the credit ratings of the Class A1 Notes, which were redeemed in full on 20 May 2021. While no updated analysis has been conducted by GCR on the ratings of the remaining rated Classes of Notes (Class A2, Class A3 and Class B1) concurrently with this withdrawal, their ratings, as accorded at GCR’s last rating surveillance of 10 December 2020, remain valid. These ratings are due for review by December 2021.

Notes Class Principal Outstanding Rating Class Rating Scale Credit Rating Outlook/Watch
Class A1 (FS7A1) R0 Issue Long Term National WD(sf)
Class A2 (FS7A2) R359,188,263 Issue Long Term National AAA(ZA)(sf) Stable Outlook
Class A3 (FS7A3) R400,000,000 Issue Long Term National AAA(ZA)(sf) Stable Outlook
Class B1 (FS7B1) R60,000,000 Issue Long Term National AAA(ZA)(sf) Stable Outlook

The transaction has a Subordinated Loan of R179.6m, which is unrated.

The Credit Ratings accorded to the Class A Notes relate to timely payment of interest and ultimate payment of principal

by their Final Redemption Date, whilst the ratings on the other Class B Notes relate to ultimate payment of interest and

ultimate payment of principal by their Final Redemption Date. The ratings exclude an assessment of the ability of the

Issuer to pay either any (early repayment) penalties or any default interest rate penalties.

Analytical Contacts

Primary analyst Yehuda Markovitz Senior Structured Finance and Securitisation

Analyst

Johannesburg, ZA YehudaM@GCRratings.com +27 11 784 1771
Secondary analyst Kyle Bales Structured Finance and Securitisation Analyst
Johannesburg, ZA KyleB@GCRratings.com +27 11 784 1771

Related Criteria and Research

Criteria for Rating Structured Finance Transactions, Sep ‘18
Criteria for Rating Residential Mortgage-Backed Securities (“RMBS”) – Nov ’18

Criteria for Rating Financial Institutions, May ‘19

Credit Rating Report For Fox Street 7 (RF) Ltd, Nov 2019

Ratings History

Notes Class Review Rating Scale Rating Outlook/Watch Date
Class A1(FS7A1) Initial National AAA(ZA)(sf) Stable Outlook Nov. 2019
Last National AAA(ZA)(sf) Stable Outlook Dec. 2020
Class A2 (FS7A2) Initial National AAA(ZA)(sf) Stable Outlook Nov. 2019
Last National AAA(ZA)(sf) Stable Outlook Dec. 2020
Class A3 (FS7A3) Initial National AAA(ZA)(sf) Stable Outlook Nov. 2019
Last National AAA(ZA)(sf) Stable Outlook Dec. 2020
Class B1 (FS7B1) Initial National AAA(ZA)(sf) Stable Outlook Nov. 2019
Last National AAA(ZA)(sf) Stable Outlook Dec. 2020

Salient Points of Accorded Ratings

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

The credit ratings have been disclosed to the issuer. The rating was solicited by, or on behalf of, the Issuer, and, therefore, GCR has been compensated for the provision of the ratings. The issuer participated in the rating process verbal and written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible.

The information received from the issuer and other reliable third parties to accord the credit rating included:

  • SENS Announcement – Partial Redemption of the Notes FS7A1 & FSA2 – Fox Street 7 (RF) Limited – 20 May 2021
  • Investor Report – 20 May 2021


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