South African Securitisation Programme (RF) Limited – Series 3 (Nov 2023)


9 November 2023 – GCR Ratings (GCR) assigned indicative national scale long term issue credit ratings and outlooks to the Class A10, B10 and C10 Notes (the new notes) expected to be issued under the South African Securitisation Programme (RF) Limited – Series 3 (SASP 3 or the Issuer) on or around 15 November 2023. The new Notes will be issued to refinance the existing Class A6, B6 and C6 Notes which have a Scheduled Maturity Date of 15 November 2023. The indicative ratings will expire on the sooner of 9 December 2023 or the issuance date of the new Notes, while the ratings assigned to the maturing Notes are expected to be withdrawn post the refinance. The credit ratings of the existing Notes are not expected to change on the planned refinance.

The rating analysis incorporates the updated asset performance and GCR’s credit and cash flow analysis using the most recent (September 2023) collateral data. While the ratings assigned to the Class A Notes demonstrate some resilience to certain modelled stresses, the Class B Notes’ and Class C Notes’ ratings show some sensitivity to variation in the key modelled metrics of the asset portfolio.

The transaction is currently in its Revolving Period. However, as per GCR’s Criteria for Rating Structured Finance Transactions, the cash flows were modelled as per the Pre-Enforcement Priority of Payments applicable in the Amortisation Period.

The credit ratings assigned to the Class A Notes relate to timely payment of interest and ultimate payment of principal by the Final Redemption Date of each Class of Notes respectively, while the ratings assigned to the Class B and Class C Notes relate to ultimate payment of interest and ultimate payment of principal by their Final Redemption Date. The ratings exclude an assessment of the ability of the Issuer to pay either any early repayment or default interest rate penalties.

SASP 3 is the third of three series of the ZAR5bn multi-seller segregated asset-backed notes programme of rental and equipment lease financed assets originated by Sasfin Bank Ltd (Sasfin). SASP Series 1 and SASP 3 are primarily made up of office equipment leases, while SASP Series 2 is primarily made up of capital asset leases.

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