Announcements

Mmela Mobility Finance (RF) Limited – Ratings Placed Under Review

Johannesburg, 15 June 2018 — Global Credit Ratings (“GCR”) has placed the final, public long-term credit ratings accorded to the Class A Notes, Class B Notes and Class C Notes issued by Mmela Mobility Finance (RF) Ltd (“the Issuer” and “the Transaction”) ‘Under Review’. GCR expects to publish an updated on the ratings by 16 July 2018. The ratings remain on Rating Watch.

The final, public credit ratings accorded to the Secured Class A Notes relate to timely payment of interest and ultimate payment of principal, whilst the ratings on all other securities relate to ultimate payment of interest and ultimate payment of principal. The ratings exclude an assessment of the ability of the Issuer to pay either any (early repayment) penalties or any default interest rate penalties.

RECENT DEVELOPMENTS

GCR issued a Ratings Watch on the Class A Notes, Class B Notes and Class C Notes on 15 December 2017 due to being advised by the Administrator, Redinkcapital (Pty) Ltd, and the Security SPV of the Transaction that a Servicer Default notice has been served to the Servicer, MFS, on 1 December 2017. The Servicer disputed the notice. Following this event, CSS Credit Solutions Services (Pty) Ltd (“CSS”) has been the appointed Servicer.

Subsequent to the event, Noteholders consented to the Extraordinary Resolution Number 1 which had an Optional Redemption of R50m in capital on 16 April 2018 and allowed for interest on the Notes to be paid on any Payment Date (from quarterly to monthly). This was followed by another capital repayment of R100m on 15 June 2018. The Issuer continued to make timely monthly interest payments on 15 March, 16 April, 15 May and 15 June 2018. A total of R150m in capital repayment to the Class A Notes, Class B Notes and Class C Notes resulted in a 34.71% proportional repayment of the originally issued Notes (R435m).

GCR met with MFS on 12 June 2018 and conducted a teleconference with the Issuer on 14 June 2018. GCR also continued regular engagements with the Administrator (Redinkcapital (Pty) Ltd).

The conclusions from the discussions are that the parties have committed to cooperate with one another to see to smooth transition to the current servicer, CSS, to fully execute their duties per the Servicing Agreement, appropriate access and correct data be shared between the parties.

GCR hereby states that it holds no view, nor does it participate in any manner whatsoever, on the validity of the abovementioned dispute. However, GCR will continue to monitor the performance of the Transaction insofar as it relates to timely payment of interest and ultimate payment of principal on the Secured Class A Notes and the ultimate payment of interest and ultimate payment of principal of the other rated securities, and communicate any action on or before 16 July 2018. The Transaction was initially scheduled to be reviewed by 19 January 2018.

RATINGS HISTORY

Security class
Stock code
Initial Rating
Long-term Rating
Short-term Rating
Outlook
Secured Class A Notes
MMF101
14 July 2017
AAA(ZA)(sf)
n.a
Stable
Secured Class B Notes
MMF201
14 July 2017
A-(ZA)(sf)
n.a
Stable
Secured Class C Notes
MMF301
14 July 2017
BB-(ZA)(sf)
n.a
Stable
 
Security class
Stock code
Last Rating
Long-term Rating
Short-term Rating
Outlook
Secured Class A Notes
MMF101
15 December 2017
AAA(ZA)(sf)
n.a
Rating Watch
Secured Class B Notes
MMF201
15 December 2017
A-(ZA)(sf)
n.a
Rating Watch
Secured Class C Notes
MMF301
15 December 2017
BB-(ZA)(sf)
n.a
Rating Watch

ANALYTICAL CONTACTS

Corné Els

Senior Structured Finance Analyst

+27 11 784 1771

CorneE@globalratings.net

Mark Vrdoljak

Senior Structured Finance Analyst

+27 11 784 1771

markvrd@globalratings.net

Yohan Assous

Sector Head: Structured Finance Ratings

+27 11 784 1771

yohan@globalratings.net

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.

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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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