Johannesburg, 19 May 2014 — Global Credit Rating Co. (Pty) Ltd (‘GCR’) has affirmed the final, public long term credit ratings accorded to the following notes (collectively the ‘Notes’) issued on 23 May 2013 by Nyati Securitisation (1) (RF) Ltd:
R262,000,000 Class A Notes, interest at 3M Jibar + 2.70%, due 28 May 2020……………..A(ZA)(sf), Outlook Stable.
R35,000,000 Class B Notes, interest at 3M Jibar + 5.00%, due 28 May 2020……………..BBB(ZA)(sf), Outlook Stable.
Nyati Securitisation (the ‘Transaction’) is a securitisation of personal loans originated by Real People (Pty) Limited through its merchant distribution channel and advanced to debtors residing in South Africa. The final, public credit ratings accorded to the Class A Notes and Class B Notes relate to timely payment of interest and ultimate repayment 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.
The rating action follows a review of the Transaction’s performance over the period 23 May 2013 to 31 January 2014 (the ‘Review Period’). The Transaction performed satisfactorily over the Review Period, with no portfolio covenants breached. The weighted average original term of the portfolio was 37.65 months as at 31 January 2014, less than the maximum covenant term of 39 months. The weighted average interest rate of the portfolio was 30.30% as at 31 January 2014, greater than the required covenant level. None of the portfolio concentration limits relating to the Top 50 or Top 10 loans were breached over the review period. No Amortisation Event or Subordinated Capital Suspension Event occurred during the Review Period. The Cash Reserve was maintained at the required level and all the required loan portfolio top-ups were met over the Review Period. Cash generated by the Transaction amounted to R222.0m over the Review Period, with the majority of the cash used to fund the growth of the underlying loan portfolio. The loan portfolio grew from R364.8m at Transaction Closing to R379.2m as at 31 January 2014, whilst the number of loan contracts increased from 18,990 at Transaction Closing to 24,030 as at 31 January 2014. GCR analysed the Transaction by applying its Global Structured Finance Rating Criteria and a tailored stressed collections approach. For more information on the Transaction please read the Nyati Securitisation Surveillance Report published on 19 May 2014.
NATIONAL SCALE RATINGS HISTORY
Initial/Last rating (May 2013):
Class A Notes : A(ZA)(sf) / Stable Outlook
Class B Notes : BBB(ZA)(sf) / Stable Outlook
+27 11 784 1771
Head of Structured Finance Ratings
+27 11 784 1771
APPLICABLE METHODOLOGIES AND RELATED RESEARCH
Global Structured Finance Rating Criteria (February 2014)
Nyati Securitisation 1 (RF) Limited New Issuance Report (May 2013)
Real People Investment Holdings (Pty) Limited Rating Report (December 2013)
Real People Investment Holding (Pty) Limited Servicer Update Report (December 2013)
RATING LIMITATIONS AND DISCLAIMERS
SALIENT FEATURES OF ACCORDED RATINGS
GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the rating was based solely on the merits of the rated entity, security or financial instrument being rated; c.) such rating was an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the rating is for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.
The Arranger participated in the rating process via face-to-face meetings, teleconferences and other written correspondence. Furthermore, the quality of info received was considered adequate and has been independently verified where possible.
The credit rating/s has been disclosed to the Arranger with no contestation of the ratings.
The information received from the Arranger and other reliable third parties to accord the credit ratings included the signed executed transaction documents together with the relevant signed legal opinion; the Issuer’s management accounts for the period May 2013 to January 2014 and quarterly waterfall reports for the quarters ending 28 August 2013, 28 November 2013 and 28 February 2014.
The rating/s above were solicited by the Issuer and Arranger of the Transaction; GCR has been compensated for the provision of the ratings.