Moody’s Traders Service, has positioned all international scale scores assigned to eight South African corporates underneath evaluation for downgrade.
The choice was made after the weakening of the South African authorities’s credit score profile, as captured by Moody’s resolution to position the sovereign scores underneath evaluation for downgrade on 24 November 2017, the company stated in an announcement on Wednesday
Moody’s positioned the worldwide scale scores underneath evaluation from detrimental of:
- Barloworld Restricted
- Fortress REIT Restricted
- Hyprop Investments Restricted
- Imperial Group Ltd
- Redefine Properties Restricted
- Telkom SA SOC Restricted
- The Bidvest Group Restricted
- Transnet SOC Ltd.
As well as, Moody’s stated it has taken no motion on the next company issuers:
- AngloGold Ashanti Restricted
- AngloGold Ashanti Holdings plc
- Gold Fields Restricted
- Gold Fields Orogen Holding (BVI) Restricted
- Naspers Restricted
- Myriad Worldwide Holdings B.V.
- MTN Group Restricted
- MTN (Mauritius) Investments Restricted
- Steinhoff Worldwide Holdings N.V.
- Steinhoff Funding Holdings Restricted
- Steinhoff Europe AG
“Scores at these entities carry some potential publicity to South Africa danger due to their authorized domicile,” stated Moody’s.
“Nonetheless AngloGold Ashanti Restricted, Gold Fields Restricted, Naspers Restricted and Steinhoff Worldwide Holdings N.V. have vital diversification outdoors South Africa so have the potential to be rated at the very least one notch above the South African sovereign. We see MTN Group Restricted as having much less potential to be rated greater than South Africa, however it was downgraded on 13 June 2017 so its ranking is at present positioned under South Africa.”
In addressing why Telkom was positioned underneath evaluation, Moody’s stated that the corporate’s 100% operational focus in South Africa and 39.three% authorities possession, uncovered it to the heightened dangers related to the working surroundings in South Africa.
“Telkom’s credit score profile continues to steadiness execution danger round its transformation technique of its enterprise mannequin and the low leverage and total sturdy credit score metrics for the ranking class,” stated Moody’s.
“This offsets to a point Telkom’s working and aggressive challenges in South Africa, in addition to the bigger capital investments required to ship on its key methods for the upcoming years.”