Johannesburg, 21 May 2013 — Global Credit Ratings has upgraded and affirmed the final, public long term ‘AA+(ZA)(sf)’ rating accorded to the following Senior Secured Notes issued by Vukile Property Fund Limited.
ZAR 580,000,000 senior secured notes, stock code VKE01, coupon 3M Jibar + 1.30%, due 8 May 2015.
ZAR 200,000,000 senior secured notes, stock code VKE02, coupon 3M Jibar + 1.54%, due 8 May 2016.
ZAR 240,000,000 senior secured notes, stock code VKE03, coupon 3M Jibar + 1.55%, due 8 May 2017.
The Senior Secured Notes were issued under the Issuer’s R5bn DMTN Programme arranged by Rand Merchant Bank (‘RMB’). The ratings of the Senior Secured Notes was 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 ‘A(ZA)’ national scale corporate credit rating to the Issuer. A rating uplift of 4 national scale notches was deemed appropriate in this particular transaction, given the “Excellent Recovery Prospects ” equating to a ‘AA+(ZA)(sf)’ rating on the transaction. The rating accorded to the Senior Secured Notes relates to ultimate payment of the principal as opposed to timely repayment. If the ratings accorded to the Issuer change, the rating of the Senior Secured Notes may also change, but potentially not in the same quantum. 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 Vukile’s R1.02bn Note Issuance, please read GCR’s Vukile Property Fund R1.02bn Senior Secured Floating Rate New Issuance Notes Report on the DTMN programme issued in May 2012 and GCR’s Vukile Property Fund R1.02bn Senior Secured Floating Rate Notes Surveillance Report published in May 2013.
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Head of Sector: Structured Finance
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APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Global Structured Finance Rating Criteria
Global Structurally Enhanced Corporate Bonds Rating Criteria
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The credit rating/s has been disclosed to Vukile Property Fund Limited with no contestation of the rating.
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