Final rating assigned to the R225mln Partially Guaranteed Notes issued by Real People
Johannesburg –29 November 2011:
Global Credit Ratings has accorded a final rating and outlook to the R225mln Partially Guaranteed Notes issued by Real People
Global Credit Ratings (“GCR”) has accorded a final ‘A(RSA)(sf)’ rating and stable outlook to the following notes (the ‘Notes’) issued by Real People Investment Holdings (Pty) Ltd (the ‘Issuer’) on 25 November 2011:
R225mln Partially Guaranteed Floating Rate Notes, stock code RPG02, due 25 November 2014.
The Notes were issued under the Issuer’s R5bln Domestic Medium Term Note (‘DMTN’) Programme established in March 2011. The transaction represents the 2nd issuance of Partially Guaranteed Notes under the DMTN Programme. R400mln of Partially Guaranteed Notes were issued on 1 March 2011. The additional R225mln Notes have been listed on the Interest Rate Market of the JSE. The Notes benefit from a guarantee provided by FirstRand Bank Ltd (‘FRB’) covering 50% of the nominal value, albeit up to a maximum amount of R112.5mln. FRB is currently rated ‘AA’ and ‘A1+’ on the ZAR currency national scale long term and short term respectively.
The Issuer, established in 2001, provides an array of credit-linked financial products to individuals throughout South Africa. The group also has operations in East Africa. GCR has accorded the Issuer a ZAR currency national scale senior unsecured long term and short term rating of ‘BBB’ and ‘A2’ respectively. For more information, please refer to the Real People Financial Institution Rating Report published in November 2011.
The new issue report entitled “Real People Real People Investment Holdings (Pty) Limited – DMTN Programme – R225mln Partially FRB Guaranteed Notes – RPG02” dated 29 November 2011, replaces the prefunding report published on 21 November 2011. The new issue report is available to subscribers of GCR’s structured finance subscription service. GCR analysed the transaction by applying its Criteria for Rating Banking and Corporate Entities and Global Structurally Enhanced Corporate Bonds Rating Criteria. The criteria reports are available for download on the website.
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.
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