Announcements

R150m Senior Secured Notes to be issued by Hospitality Property Fund Limited

GCR has accorded an indicative, public long term ‘A(ZA)(sf)’ rating to the following Senior Secured Notes (the ‘Senior Notes’) to be issued by Hospitality Property Fund Limited (the ‘Issuer’) in April 2013:

R150m Senior Secured Floating Rate Notes due April 2016.

The Senior Notes are to be issued under the Issuer’s R2bn DMTN Programme arranged by Rand Merchant Bank (‘RMB’). The rating of the Senior Notes is derived by applying a notching up approach, starting from the long term senior unsecured corporate credit rating of the Issuer. Based on fundamentals and prospects of the Issuer, GCR has accorded a long term ‘BBB-(ZA)’ national scale corporate credit rating to the Issuer. A rating uplift of 4 national scale notches is deemed appropriate in this particular transaction, given the “Excellent recovery prospects” equating to a ‘A(ZA)(sf)’ rating on the transaction. The rating accorded to the Senior Notes relates to ultimate payment of the principal. If the ratings accorded to the Issuer change, the rating of the Senior Notes may also change, but potentially no in same scale. The rating excludes an assessment of the Issuer to pay any (early repayment) penalties. GCR analysed the transaction by applying its Global Structured Finance Rating Criteria and its Global Structurally Enhanced Corporate Bonds Rating Criteria. For more information on the Hospitality Property Fund R150m Issuance, please read GCR’s pre-funding report on this programme issued in March 2013.

Contacts
Emma-Jane Fulcher, Head of Structured Finance, Johannesburg, fulcher@globalratings.net, +27 11 784 1771.
Mark Vrdoljak, Structured Finance, Johannesburg, markvrd@globalratings.net, +27 11 784 1771.

Website: www.globalratings.net

Disclaimer
Note that GCR is not a legal, tax or financial adviser, and only provides a credit opinion of the rated securities. For example, a rating does not cover a potential change in laws nor can it be regarded as an audit. Moreover, GCR is not a party to the transaction documents. Users of our credit ratings should familiarise themselves with all aspects of the Transaction (including the Programme legal opinion), and should form their own views in this respect. They should not rely on GCR for legal, tax or financial advice, and are encouraged to contact the relevant advisers.

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