Announcements

Idwala Industrial Holdings Limited – Senior Secured Notes, Ratings Announcement.

Johannesburg, 31 July 2014: Global Credit Rating Co. (Pty) Ltd (‘GCR’) has upgraded the following Senior Secured Notes (the ‘Senior Secured Notes’) issued by Idwala Industrial Holdings Limited (the ‘Issuer’). At the same time, GCR has withdrawn the ratings assigned to the Senior Secured Notes at the client’s request.

• R 1,050,000,000 Senior Secured Corporate Notes, stock code IDW01U, due 30 June 2016, BBB+(ZA), Outlook Stable.

• R 355,000,000 Senior Secured Amortising Notes, stock code IDW02U, due 30 June 2016, BBB+(ZA), Outlook Stable.

• R 85,000,000 Senior Secured Capex Notes, stock code IDW03U, due 30 June 2016, BBB+(ZA), Outlook Stable.

The Senior Secured Notes were initially listed on the Interest Rate Market of the JSE Limited, Johannesburg. On 28 March 2014 Idwala Industrial Holdings Limited sought Noteholder approval to delist the Senior Secured Notes from the JSE Limited and convert to unlisted Notes. The delisting and conversion to unlisted notes was successfully concluded on 29 July 2014, and accordingly, the Senior Secured Notes stock codes were changed from IDW001, IDW002, IDW003 to IDW01U, IDW02U, IDW03U respectively.

RATINGS HISTORY

Stock code Previous Rating Short Term Rating Long Term Rating Rating Outlook
IDW001 20 March 2014 n.a BBB(ZA) Stable
IDW002 20 March 2014 n.a BBB(ZA) Stable
IDW003 20 March 2014 n.a BBB(ZA) Stable
Stock code Previous Rating Short Term Rating Long Term Rating Rating Outlook
IDW001 10 July 2012 n.a BBB(ZA) Stable
IDW002 10 July 2012 n.a BBB(ZA) Stable
IDW003 18 December 2012 n.a BBB(ZA) Stable

ANALYTICAL CONTACTS
Analyst
Corné Els
Analyst
+27 11 784 1771
CorneE@globalratings.net

Committee Chairperson
Emma-Jane Fulcher
Head: Structured Finance Ratings
+27 11 784 1771
fulcher@globalratings.net

APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Global Master Criteria for Rating Corporate Entities – Aug ’13
Idwala Industrial Holdings Limited Report – May ’14
Global Summary Structurally Enhanced Corporate Bonds Rating Criteria – Oct ’13
Idwala Industrial Holdings Limited Secured Bond Surveillance Report – Mar ’14

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 AS PER GCR’S STRUCTURED FINANCE GLOSSARY IN THIS ANNOUNCEMENT

Credit Rating

A rating accorded to the performance of either ultimate or timely payment of obligations.

Credit Rating Agency

A party that provides an opinion on the credit quality of assets, debt securities and companies.

Credit Risk

The probability or likelihood that a borrower will not meet it’s debt obligations. Credit Risk can further be separated between current credit risk (immediate) and potential credit risk (deferred).

Lien

A right of retention of someone else’s property due to expensed money or labour on property acquires a lien until payment is made.

Liquidity Risk

The risk that a financial instrument cannot be traded on it’s market price due to the size of the market.

Long Term Rating

A credit rating based on the opinion of the ability to repay long term (more than a year) obligations.

Property

Movable or immovable asset.

Rating Outlook

A Rating Outlook indicates the potential direction of a rating over the medium term, typically a one to two years period. 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).

Rating Watch

Indicates that a rating is under review for possible change in the short-term and the movement may be either positive or negative.

Short Term Rating

A credit rating based on the opinion of the ability to honour short term (less than a year) obligations.

Stock Code

A unique code allocated to a publicly listed security.

Structured Finance

A method of raising funds in the capital markets. A Structured Finance transaction is established to accomplish certain funding objectives whist reducing risk.

Under Review

Failure to carry out a full review of a rated entity within the designated timeframe, either through lack of information or delays in finalisation, i.e. review is ongoing.

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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.

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