Global Credit Ratings (‘GCR’) has affirmed the ‘A1(RSA)(sf)’ short term rating of the ING127 Notes in issue and accorded a ‘A1(RSA)(sf)’ short term rating to the ING141 Notes issued under the iNguza Investments Note Programme
GCR has affirmed the ‘A1(RSA)(sf)’ short term rating of the following senior secured debentures (the ‘ING127 Notes’) issued on 13 September 2011 by iNguza Investments (Pty) Ltd (‘iNguza Investments’):
R327mln Senior Secured Floating Rate Notes due 7 December 2012, stock code ING127.
R873mln of the original transaction volume under stock code ING127 was repaid by the Issuer on 7 March 2012.
Concurrently, GCR has accorded a ‘A1(RSA)(sf)’ short term rating to the following senior secured debentures (the ‘ING141 Notes’) issued on 7 March 2012 by iNguza Investments:
R873mln Senior Secured Floating Rate Notes due 7 September 2012, stock code ING141.
On 7 December 2011, the legal maturity date of the ING127 Notes was extended from 7 September 2012 to 7 December 2012. The Issuer has decided to divide the original issuance amount under the ING127 Notes (R1.2bln) into two separate notes with different maturity dates (with stock codes ING127 and ING141). However, both the ING127 and ING141 Notes (collectively referred to as the ‘Notes’) reference the same underlying security in aggregate and rank pari passu amongst each other. It is noted that the ING141 transaction is based on the same terms and conditions as the ING127 transaction.
The Notes have been issued under the ‘iNguza Investments Note Programme’, a programme administered by RMB. The Notes issued forms a ‘sub-programme’ of iNguza Investments. The underlying security for the transaction are assets qualifying under the ‘Portfolio Guidelines’ which assets have a remaining maturity not exceeding 1 year.
The rating accorded to the Notes relates to timely payment of interest and principal. GCR accorded a short term rating because the duration of the assets and the Notes is not more than one year. The rating of the Notes is credit linked to the average short term credit rating of the reference entities taking into account the Portfolio Guidelines. If the rating of a reference entity changes, the rating of the Notes may also change. The rating of the Notes may also change if relevant risk presenting entities are not considered to be of sufficient credit quality anymore and no appropriate remedial action is undertaken when necessary. For more information on the iNguza Programme, please read GCR’s report on this programme issued in September 2009, as well as the Short Term Asset Portfolio ING127 New Issuance Report published on 27 September 2011 and the Short Term Asset Portfolio ING127 and ING141 surveillance report to be published on 10 April 2012.
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.