Announcements

GCR withdraws The Thekwini Fund 11 (RF) Limited TH11A1, TH11A4 and TH11A7 Notes Ratings on Notes Red

Johannesburg, 20 October 2017 — Global Credit Ratings (“GCR”) has withdrawn the final, public long-term credit ratings accorded to the following Class A Notes issued by The Thekwini Fund 11 (RF) Ltd (the “Issuer”), following the full redemption of the Notes:

Class A1 Notes,
stock code TH11A1;
due 18 July 2041;
AAA(ZA)(sf)
Stable Outlook;
Class A4 Notes,
stock code TH11A4;
due 18 July 2041;
AAA(ZA)(sf)
Stable Outlook;
Class A7 Notes,
stock code TH11A7;
due 18 July 2041;
AAA(ZA)(sf)
Stable Outlook.

RATING RATIONALE

The Thekwini Fund 11 (RF) Limited has an amortising R4bn Residential Mortgage Backed Securities Programme (the “Programme”), comprising of home loans originated by SA Home Loans (Pty) Ltd (“SAHL”). The Issuer redeemed an aggregate of R83,994,625 in Class A Notes at the Interest Payment Date on 18 October 2017. Following the partial capital redemption, the Class A1, Class A4 and Class A7 Notes (collectively referred to as the “designated Class A1 Notes”) were paid in full. Accordingly, GCR has withdrawn the ratings accorded to the designated Class A1 Notes listed above.

The final, public credit ratings accorded to the designated Class A1 Notes related to timely payment of interest and ultimate payment of principal by the Final Redemption Date. The ratings excluded an assessment of the ability of the Issuer to pay either any (early repayment) penalties or any default interest rate penalties. The Issuer still has outstanding Class A Notes (that are designated Class A2 and designated Class A3 Notes), as well as Class B and Class C Notes that are rated by GCR, in addition to unrated Class D Notes. For more information regarding the Transaction, please refer to The Thekwini Fund 11 (RF) Limited – R4bn Residential Mortgage Backed Securities Programme Surveillance Report published on 28 April 2017.

RATINGS HISTORY

Stock code
Initial Rating
Long Term Rating
Short Term Rating
Outlook
TH11A1 (withdrawn)
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A2
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A3
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A4 (withdrawn)
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A5
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A6
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A7 (withdrawn)
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11A8
29 April 2016
AAA(ZA)(sf)
n.a
Stable
TH11B1
29 April 2016
AA(ZA)(sf)
n.a
Stable
TH11B2
29 April 2016
AA(ZA)(sf)
n.a
Stable
TH11B3
29 April 2016
AA(ZA)(sf)
n.a
Stable
TH11C1
29 April 2016
BBB(ZA)(sf)
n.a
Stable
TH11C2
29 April 2016
BBB(ZA)(sf)
n.a
Stable
TH11C3
29 April 2016
BBB(ZA)(sf)
n.a
Stable
Stock code
Last Rating
Long Term Rating
Short Term Rating
Outlook
TH11A1 (withdrawn)
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A2
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A3
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A4 (withdrawn)
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A5
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A6
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A7 (withdrawn)
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11A8
28 April 2017
AAA(ZA)(sf)
n.a
Stable
TH11B1
28 April 2017
AA+(ZA)(sf)
n.a
Positive
TH11B2
28 April 2017
AA+(ZA)(sf)
n.a
Positive
TH11B3
28 April 2017
AA+(ZA)(sf)
n.a
Positive
TH11C1
28 April 2017
BBB+(ZA)(sf)
n.a
Positive
TH11C2
28 April 2017
BBB+(ZA)(sf)
n.a
Positive
TH11C3
28 April 2017
BBB+(ZA)(sf)
n.a
Positive

ANALYTICAL CONTACTS

Primary Analyst

Mark Vrdoljak

Senior Structured Finance Analyst

+27 11 784 1771

markvrd@globalratings.net

Secondary Analyst

Tinashe Mujuru

Structured Finance Analyst

+27 11 784 1771

tinashem@globalratings.net

Committee Chairman

Yohan Assous

Sector Head: Structured Finance Ratings

+27 11 784 1771

yohan@globalratings.net

APPLICABLE METHODOLOGIES AND RELATED RESEARCH

Global Master Structured Finance Rating Criteria – Feb ’17;

Global Residential Mortgage Backed Securities Rating Criteria – May ’17;

The Thekwini Fund 11 (RF) Limited New Ratings Report – Apr ’16; and

The Thekwini Fund 11 (RF) Limited Surveillance Report – Apr ’17.

RATING LIMITATIONS AND DISCLAIMERS

ALL GCR’S CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: http://GLOBALRATINGS.NET/UNDERSTANDING-RATINGS. IN ADDITION, GCR’S RATING SCALES AND DEFINITIONS ARE ALSO AVAILABLE FOR DOWNLOAD AT THE FOLLOWING LINK: http://GLOBALRATINGS.NET/RATINGS-INFO/RATING-SCALES-DEFINITIONS. GCR’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, PUBLICATION TERMS AND CONDITIONS AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE AT http://GLOBALRATINGS.NET.

GLOSSARY OF TERMS/ACRONYMS USED IN THIS DOCUMENT AS PER GCR’S STRUCTURED FINANCE GLOSSARY

Capital The sum of money that is used to generate proceeds.
Default A default occurs when: 1.) The Borrower is unable to repay its debt obligations in full; 2.) A credit-loss event such as charge-off, specific provision or distressed restructuring involving the forgiveness or postponement of obligations; 3.) The borrower is past due more than X days on any debt obligations as defined in the transaction documents; 4.) The obligor has filed for bankruptcy or similar protection from creditors.
Issuer The party indebted or the person making repayments for its borrowings.
Loan A sum of money borrowed by a debtor that is expected to be paid back with interest to the creditor. A debt instrument where immovable property is the collateral for the loan. A mortgage gives the lender a right to take possession of the property if the borrower fails to repay the loan. Registration is a prerequisite for the existence of any mortgage loan. A mortgage can be registered over either a corporeal or incorporeal property, even if it does not belong to the mortgagee. Also called a Mortgage bond.
Long-Term Rating A long term rating reflects an issuer’s ability to meet its financial obligations over the following three to five year period, including interest payments and debt redemptions. This encompasses an evaluation of the organisation’s current financial position, as well as how the position may change in the future with regard to meeting longer term financial obligations.
Payment Date The date on which the payment of a coupon is made.
Principal The total amount borrowed or lent, e.g. the face value of a bond, excluding interest.
Rating Outlook A Rating outlook indicates the potential direction of a rated entity’s rating over the medium term, typically one to two years. An outlook may be defined as: ‘Stable’ (nothing to suggest that the rating will change), ‘Positive’ (the rating symbol may be raised), ‘Negative’ (the rating symbol may be lowered) or ‘Evolving’ (the rating symbol may be raised or lowered).
Redemption The repurchase of a bond at maturity by the issuer.
Securities Various instruments used in the capital market to raise funds.
Short-Term Rating A short term rating is an opinion of an issuer’s ability to meet all financial obligations over the upcoming 12 month period, including interest payments and debt redemptions.
Stock Code A unique code allocated to a publicly listed security.
Surveillance Process of monitoring a transaction according to triggers, covenants and key performance indicators.
Timely Payment The principal debt, interest, fees and expenses being repaid promptly in accordance with the contractual obligation.
Ultimate Payment A measure of the principal debt, interest, fees and expenses being repaid over a period of time determined by recoveries.

For a detailed glossary of terms, please click here

SALIENT FEATURES OF ACCORDED RATINGS

GCR affirms that a.) no part of the ratings 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; c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the ratings is for a maximum of 12 months, or earlier as indicated by the applicable credit ratings document.

The Servicer participated in the rating process via face-to-face meetings and other written correspondence.

The credit ratings have been disclosed to the Servicer with no contestation of the ratings.

The ratings above were solicited by, or on behalf of the rated client, and therefore, GCR has been compensated for the provision of the ratings.

The information received from the Issuer and other reliable third parties to accord the credit ratings included:

  • SENS Announcement dated 17 October 2017 and written confirmation of redemption of the Notes.

image_pdfPDF View

Leave a Reply



ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://GCRRATINGS.COM. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT WWW.GCRRATINGS.COM/RATING_INFORMATION. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR's CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THIS SITE.

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.

Copyright 2019 GCR INFORMATION PUBLISHED BY GCR MAY NOT BE COPIED OR OTHERWISE REPRODUCED OR DISCLOSED, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT GCR’S PRIOR WRITTEN CONSENT. Credit ratings are solicited by, or on behalf of, the issuer of the instrument in respect of which the rating is issued, and GCR is compensated for the provision of these ratings. Information sources used to prepare the ratings are set out in each credit rating report and/or rating notification and include the following: parties involved in the ratings and public information. All information used to prepare the ratings is obtained by GCR from sources reasonably believed by it to be accurate and reliable. Although GCR will at all times use its best efforts and practices to ensure that the information it relies on is accurate at the time, GCR does not provide any warranty in respect of, nor is it otherwise responsible for, the accurateness of such information.GCR adopts all reasonable measures to ensure that the information it uses in assigning a credit rating is of sufficient quality and that such information is obtained from sources that GCR, acting reasonably, considers to be reliable, including, when appropriate, independent third-party sources. However, GCR cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall GCR have any liability to any person or entity for (a) any loss or damage suffered by such person or entity caused by, resulting from, or relating to, any error made by GCR, whether negligently (including gross negligence) or otherwise, or other circumstance or contingency outside the control of GCR or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits) suffered by such person or entity, as a result of the use of or inability to use any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained in each credit rating report and/or rating notification are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained in each credit rating report and/or rating notification must make its own study and evaluation of each security it may consider purchasing, holding or selling. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY GCR IN ANY FORM OR MANNER WHATSOEVER.