London, 27 March 2018 -- Moody's Investors Service has today taken rating actions on 11 South
African corporates. The rating actions were driven by Moody's recent
decision to confirm South Africa's government issuer rating at Baa3
with a stable outlook.
Moody's rating action on the South African government issuer rating on
23 March 2018 reflects the view that the previous weakening of South Africa's
institutional framework will gradually reverse under a more transparent,
predictable policy framework. For further information, refer
to the rating action press release: https://www.moodys.com/research/--PR_381164
Moody's confirmed the following global scale ratings with a stable outlook
from rating under review for downgrade:
» Barloworld Limited
» The Bidvest Group Limited
» Fortress REIT Limited
» Growthpoint Properties Limited
» Imperial Group Ltd
» Mercedes-Benz South Africa Limited
» Redefine Properties Limited
» Telkom SA SOC Limited
» Transnet SOC Ltd.
Moody's confirmed the following global scale ratings with a negative outlook
from rating under review for downgrade:
» Hyprop Investments Limited
Moody's affirmed the following global scale ratings and changed the outlook
on the ratings to stable from negative:
» Sasol Limited
» Sasol Financing International Limited
In line with the affirmation of Sasol Limited's ratings the company's
national scale ratings were affirmed. The national scale ratings
on the other 10 South African corporates that Moody's has taken
actions on remain unchanged. The rating action concluded the review
for downgrade initiated on 27 November 2017 for Growthpoint Properties
Limited, the review for downgrade initiated on 28 November 2017
for Mercedes-Benz South Africa Limited and the review for downgrade
initiated on 29 November 2017 on all other ratings listed above.
A full list of affected ratings is provided towards the end of this press
release.
RATINGS RATIONALE
The rating actions reflect the degree of credit linkages of these corporates
with the South African economy and their material exposure to the domestic
operating environment. The actions consider that recovery in the
country's institutions will, if sustained, gradually
support a corresponding recovery in its economy, along with a stabilization
of fiscal strength which will have a positive bearing on South Africa's
corporate environment.
-- CONFIRMATION OF GLOBAL SCALE RATINGS WITH A STABLE OUTLOOK
FROM RATING UNDER REVIEW FOR DOWNGRADE
BARLOWORLD LIMITED
The Baa3/Aa1.za issuer ratings recognise Barloworld Limited's (Barloworld)
leading competitive positions in the markets in which it operates,
as well as its strong brand offerings and stable long-term relationships
with its main suppliers. The rating also considers Barloworld's
diversified product mix and its resilient business model, whereby
its integrated after-sales support segments are able to soften
the impact from the decline in new equipment and vehicle sales during
cyclical downturns. Barloworld's credit metrics have historically
been relatively stable and are supported by the company's ongoing commitment
to balanced financial policies. While adjusted debt/EBITDA of 1.9x
is strongly positioned within the rating category, Barloworld's
EBIT/interest expense cover of 3.0x and operating margin of 6.9%
are weakly positioned (as of 30 September 2017 -- FY2017) leaving
it susceptible to weaker operating performance and a rising interest rate
environment. Ratings also consider Barloworld's good liquidity
position underpinned by a balanced debt maturity profile.
The rating is constrained by Barloworld's exposure to: (1) the Sub-Saharan
African and Russian markets, leaving it exposed to the weak economic
conditions of these countries; and (2) more cyclical mining,
agricultural, construction and motor related industries, which
are currently experiencing prolonged depressed global commodity prices
and weaker local consumer environments. In addition, Barloworld
is exposed to key supplier risk as most of its operations depend on its
position as the principal agent for a number of high profile brands such
as Caterpillar Inc. (A3 stable). This is mitigated by its
long-term relationships and close strategic alignment as well as,
in some cases, its fixed term contractual agreements with its principals,
which we expect to continue.
The stable outlook reflects our expectation that Barloworld will maintain
its leading market position across its operations, as well as its
strong relationships with its key principals. The outlook assumes
that management will pursue balanced financial policies resulting in relatively
stable credit metrics over the next 12 to 18 months, and will also
maintain a good liquidity profile.
THE BIDVEST GROUP LIMITED
The Bidvest Group Limited's (Bidvest) Baa3/Aa1.za long-term
issuer ratings reflect the Group's: (1) stable operational and financial
profile; (2) diversified sources of revenue across a range of businesses;
(3) low financial debt leverage, with healthy interest cover and
good cash flow generation in the context of the high volume, low
margin nature of many of its activities; and (4) experienced management
team with a successful track record of organic growth and growth through
acquisitions, which have been effectively integrated into the Bidvest
network while managed on a decentralized basis.
The ratings also factor: (1) low but improving growth prospects
supported by improving business and consumer sentiment in South Africa;
(2) event risk from debt financed acquisitions that may overstretch current
leverage levels; and (3) limited geographic diversification.
The ratings also consider the credit linkage to the South African government
bond rating given Bidvest's high operational concentration in South Africa.
The stable outlook reflects Moody's expectations that Bidvest will continue
to maintain its leadership positions and maintain adequate debt and cash
flow metrics in the short to medium term through prudent balance sheet,
liquidity and risk management practices.
FORTRESS REIT LIMITED
Fortress REIT Limited's (Fortress or the Fund) Baa3/Aa1.za long-term
issuer ratings are underpinned by its niche sector exposure to regional
retail centres along key transportation nodes and high quality logistics
properties across South Africa, which produce stable recurring income
underpinned by positive rental increases and moderate to low vacancy rates
(5.8% as of 31 December 2017). The ratings are also
supported by a broadly diversified portfolio by property sector,
tenants and location, with offshore listed investments providing
rand hedged foreign currency cash flows and moderate fixed charge coverage,
as measured by the adjusted EBITDA / (interest expense plus capitalised
interest) of 3.3x for the last twelve months to 31 December 2017.
At the same time, the ratings assigned also factor: (1) exposure
to the weak South African economy, notably through its income exposure
to regional shopping centres, where the tenants are exposed to lower
LSM (living standards measure) shoppers who are more sensitive to the
state of the South African economy; (2) its equity stakes in listed
local and offshore property investments, which expose the Fund to
market volatility, given it represents 39% of total tangible
assets if listed investments are measured at market value (as of 25 March
2018); (3) higher leverage, as measured by adjusted total debt
/ gross assets of 31% following the recent decline in listed investment
values; (4) a high level of secured debt at 85% of total gross
debt in its capital structure and a moderate percentage of gross assets
that are unencumbered of 39%; and (5) a high proportion of
debt maturing in the next three years (39% of total outstanding
debt).
As a result of the recent material decline in listed investments (to ZAR23.0
billion as of 25 March 2018 from ZAR40.7 billion as of 31 December
2017), Moody's adjusted leverage (adjusted debt/gross assets)
increased to around 31% (pro forma based on current market values)
from 25% as of 31 December 2017. The headroom for the Baa3
rating has been eroded and now has limited tolerance for further market
value erosion. Per our calculations, a further ZAR7 billion
decline in the listed investments' market value would result in Moody's
adjusted debt/gross assets reaching 35%, exceeding our downward
rating guidance. We will continue to monitor the market value of
Fortress' investments, developments on the cross shareholding with
Resilient REIT as well as the proposed restructuring of the Siyakha Education
Trusts, which may require shareholder approval.
The stable outlook on the ratings reflects our view that Fortress will
maintain an operating profile such that revenues grow at least in line
with inflation and EBITDA margins remain relatively stable. The
outlook also assumes there is no further equity value declines and Fortress
continues to receive stable to growing dividend income from its listed
investments.
GROWTHPOINT PROPERTIES LIMITED
Growthpoint Properties Limited's (Growthpoint) Baa3/Aaa.za long-term
issuer ratings are supported by its strong market position as the largest
primary listed REIT company in South Africa. The ratings are also
based on the significant property portfolio size and quality that benefits
from an active internal management team and produces solid, recurring
rental income underpinned by: (1) medium- to long-term
leases; (2) contractual annual rent escalation clauses above inflation;
(3) low vacancy rates; and (4) diversification by tenant base and
property sector. The portfolio is geographically concentrated in
the province of Gauteng, South Africa, but substantial investments
over the past three years in Australia (Aaa stable) and more recently
central and eastern Europe have broadened its geographical base.
The ratings also factor Moody's expectation that Growthpoint's development
activity will increase as tenant demand in South Africa improves,
but that the company will continue to limit development risk to only a
moderate exposure and that its projects will be predominantly pre-let.
A constraining factor on the ratings is: (1) the credit linkages
to the government of South Africa given Growthpoint's operational concentration
in South Africa; (2) the high proportion of debt that is secured
equivalent to 67% of total debt; as well as (3) the low level
of unencumbered assets to gross assets of 37%. A further
constraint is the sizable approaching debt maturities over the next three
years of around 47%. We note that Growthpoint has,
in the past, been successful in addressing approaching debt maturities
around 12 months before the maturity date. All figures are as of
the last twelve months to 31 December 2017 and adjusted per Moody's standard
definitions and adjustments.
The stable outlook is in line with the action taken on the Government
of South Africa on 23 March 2018. Growthpoint's credit profile
is constrained by the South African sovereign rating given its operational
concentration in South Africa, with 76% property exposure
and 80% reported EBIT (as of 31 December 2017) derived from properties
within the country. This exposes the bulk of its operations to
the heightened risks associated with the political, social and economic
environment of South Africa.
IMPERIAL GROUP LTD
Imperial Group Ltd's (Imperial) Baa3/ Aa1.za long-term issuer
ratings continue to be based on Moody's perception of the Group's business
risk profile, combined with its level of debt protection ratios,
and its diversified business structure, which mitigates its complex
organization structure. The ratings also recognise Imperial's long
history and solid reputation in South Africa, its track record of
growth, its strong market position and quality of management.
Furthermore, the rating factors Imperial's ongoing conservative
financial policies and its inherent exposure to currency volatility.
While credit metrics remain within rating guidance, the declining
trend in metrics has eroded the headroom within Imperial's Baa3 rating
category. We have noted, through non-core asset disposal
over the past 12 months, credit metrics have stabilized and are
expected to improve in the next 12-18 months.
The stable outlook on the ratings of Imperial Group Ltd reflects Moody's
expectation that Imperial will continue to operate within its stated financial
policies.
MERCEDES-BENZ SOUTH AFRICA LIMITED
The confirmation of Mercedes-Benz South Africa Limited's
(MBSA) (P)A2 ratings and the stable outlook, which was placed on
review for downgrade on 28 November 2017, reflects the confirmation
of the Government of South Africa's long-term ratings,
and the local currency ceiling.
MBSA is the South African subsidiary of Daimler AG (Daimler, Issuer
rating A2 stable) who is its sole shareholder. MBSA's programme
is supported by an unconditional and irrevocable guarantee by Daimler
AG.
MBSA' DMTN program is rated in line with Daimler's rating,
based on the existing unconditional and irrevocable guarantee from the
parent.
The stable outlook reflects Moody's expectation that Daimler's business
setup has the capacity to contend with the long-term cyclicality
within the global passenger vehicle markets and its challenging landscape
as a result of heavy investment requirements for: (1) alternative
propulsion technologies; (2) autonomous driving; (3) the shift
of production capacities towards alternative fuel vehicles; (4) connectivity;
as well as (5) regulations relating to vehicle safety, emissions
and fuel economy.
REDEFINE PROPERTIES LIMITED
Redefine Properties Limited's (Redefine) Baa3/Aa1.za long-term
issuer ratings are underpinned by a material growth of the company's property
portfolio over the past 18 months within South Africa, as well as
more recently into Europe and Australia. The sizable portfolio
of predominantly directly held South African properties (81% of
property assets) has moderate and relatively stable occupancy rates of
95%, that produced high EBITDA margins. The rating
is also supported by a well-diversified property portfolio across
key sectors in office, industrial and retail, with local and
offshore property (direct and indirect) exposures in South Africa,
United Kingdom, Poland and Australia.
The rating is, however, constrained by: (1) the portfolio's
predominant exposure to South Africa; (2) the more complex organisational
and reporting structure; and (3) low fixed charge cover and high
total debt to gross assets ratio (leverage) of 2.0x and 39%,
respectively. Moody's notes that Redefine has recently entered
into an agreement to sell a 19% stake in Cromwell Property Fund
with proceeds of ZAR3.5 billion, most of which will be used
to settle some of the existing debt and therefore reduce leverage.
Further key constraints on the ratings include the large proportion of
secured debt in the company's capital structure (68% of the total
debt) and the high level of encumbered assets to gross assets.
All data points are as of 31 August 2017 and adjusted per Moody's standard
definitions and adjustments.
The stable outlook reflects Moody's view that Redefine will continue to
produce steady rental income and make well-conceived investments
within its stated financial policies. It also assumes that management
will maintain an adequate liquidity profile at all times.
TELKOM SA SOC LIMITED
Telkom SA SOC Limited's (Telkom) Baa3/Aa1.za long-term
issuer ratings reflect Moody's view on the fundamental credit quality
of Telkom, represented by a Baseline Credit Assessment (BCA) of
baa3, combined with the strong linkage between Telkom and the Government
of South Africa as reflected by our assumptions of "high"
dependence on and "moderate" support from the South African
government. Telkom's ratings and outlook are in line with the government
of South Africa's bond rating of Baa3 with a stable outlook.
Telkom's BCA of baa3 continues to reflect the transformation process of
its business model and the execution challenges faced through: (1)
strategies to increase adoption of information communication technology
(ICT) among its business customers; (2) customer service improvements;
and (3) network upgrades for its improved bundled offerings. The
current BCA is also based on Telkom's low leverage and overall strong
credit metrics for the rating category. This offsets, to
some degree, Telkom's operating and competitive challenges,
as well as the larger capital investments required to deliver on its key
strategies for the upcoming years. The rating further assumes that
Telkom will not experience any difficulties in terms of liquidity,
refinancing or funding and so will be able to meet its financial and operating
commitments. To the extent these would arise, further downward
pressure would be exerted on the rating or outlook. However,
we recognise the company's position as a leading telecommunications operator,
with a leading market position in South Africa's fixed-line business
and a growing presence in broadband and mobile offerings.
The stable outlook assumes that Telkom continues to execute on its strategies
to de-risk the business from declining fixed line voice revenues
and gain steady market share in its mobile offering. The stable
outlook further assumes that leverage will not increase materially from
current levels and liquidity will remain strong at all times.
TRANSNET SOC LTD.
Transnet SOC Ltd's (Transnet) Baa3 rating comprises Moody's view of the
fundamental credit quality of Transnet, represented by a Baseline
Credit Assessment (BCA) of baa3, combined with the strong linkage
between Transnet and the South African government as reflected by our
assumptions of "very high" dependence on and "high"
support from the government. Transnet's ratings and outlook are
in line with the government of South Africa's bond rating.
The BCA of baa3 reflects: (1) Transnet's monopoly ownership and
operation of the South African railway infrastructure and freight services,
which are consistently profitable; (2) its ownership of South Africa's
eight seaports and operations of a large part of South Africa's stevedoring
services, together with its operation of the strategically important
hydrocarbon pipelines; (3) its significant medium term capital expenditure
programme, required to maintain and upgrade its infrastructure assets;
(4) good profitability but weaker credit metrics as reflected by high
debt leverage and low interest coverage ratios; and (5) management's
track record of executing on its capital investment strategy.
The stable outlook assumes that Transnet is able to maintain positive
revenue growth at least at the same level of the South African GDP growth
and demonstrate operational efficiencies. The outlook further assumes
a track record of executing on its capital investment strategy while adjusting
to changes in the macroeconomic environment with a view to managing within
its stated financial policies.
-- CONFIRMATION OF GLOBAL SCALE RATING WITH A NEGATIVE OUTLOOK
FROM RATING UNDER REVIEW FOR DOWNGRADE
HYPROP INVESTMENTS LIMITED
Hyprop Investments Limited's (Hyprop) Baa3/Aa1.za long-term
issuer ratings are supported by the high quality and well-positioned
retail portfolio in South Africa, which benefits from active management
and low vacancies (1.6% as of 31 December 2017), producing
solid, recurring rental income. The ratings also incorporate
fixed-charge cover of 3.7x (according to our standard definitions
and adjustments, as of LTM to 31 December 2017) and factor in Hyprop's
conservative approach to development risk.
At the same time, the ratings assigned also factor: (1) the
moderate size of the portfolio and smaller scale of operations relative
to local peers, as measured by total assets (ZAR40.6 as of
31 December 2017); (2) the high exposure to the retail sector,
as well as high geographic concentration in the Gauteng province;
(3) the small but growing exposure to retail properties across the rest
of Africa and Central and Eastern Europe (currently Ghana (B3 stable),
Zambia (B3 stable), Nigeria (B2 stable), Serbia (Ba3 stable),
Montenegro (B1 stable), Macedonia and Croatia (Ba2 stable),
which improves diversification but increases Hyprop's operational risk
and weakens its overall credit profile; (4) high percentage of secured
debt in its capital structure and high leverage, as measured by
adjusted total debt / gross assets of 35%. All figures are
as of the last twelve months to 31 December 2017 and adjusted per Moody's
standard definitions and adjustments.
The negative outlook on Hyprop reflects the company's financial
approach of debt funded acquisitions across Eastern Europe and the growing
property exposure and cash flows from weaker sovereign markets.
Following the proposed purchase of two shopping centers in Croatia during
February 2018 through Hystead Limited (Moody's fully consolidates
its 60% joint venture in Hystead Limited), we expect adjusted
debt / gross assets to weaken beyond our rating guidance of 35%
for the Baa3 rating. We could stabilize the outlook if we see leverage
consistent with our rating guidance. We note Hyprop's intention
to list Hystead Limited during 2018, which is expected to release
capital and could reduce Hyprop's debt levels.
-- AFFIRMATION OF SASOL'S GLOBAL SCALE RATING WITH
A STABLE OUTLOOK FROM NEGATIVE
The affirmation of Sasol Limited's (Sasol) Baa3 global scale long-term
issuer ratings and Aaa.za national scale ratings along with the
Baa3 global scale long-term senior unsecured notes rating of Sasol
Financing International Limited reflects Sasol's: (1) well-entrenched
leading market position in liquid fuels and chemicals production in South
Africa and their resiliency to economic pressures in the country;
(2) integrated value chain and business model underpinned by proprietary
technology; factors which offer control of its supply chain and protection
against competition; and (3) robust financial profile supported by
sound and sustained cash flow generation, as well as Sasol's conservative
and prudent financial policies, as seen by its aim of managing (i)
reported net debt/equity up to a temporary maximum of 44% until
30 June 2018; and (ii) reported net debt/ EBITDA below 2x.
Concurrently, Moody's changed the outlook on Sasol's
rating to stable from negative capturing: (1) further progress made
on the development of Sasol's Lake Charles Chemicals Project (LCCP),
where execution risk continues to reduce as the project progresses;
(2) a benign chemicals and oil price (Moody's revised its oil price
upward to $45-$65/bbl from $40-$60/bbl
on 13 March 2018) environment providing tailwinds to Sasol's credit
profile; (3) protection afforded by Sasol's various hedging
initiatives protecting the company's financial year end 2019 cash
flow generation from South African/US dollar exchange rate appreciation
and downside oil price risk; and (4) recent improvements in the economic
and political backdrop in South Africa as captured by Moody's confirmation
of South Africa's ratings with a stable outlook from under review
for downgrade.
On 29 November 2017, Moody's Investors Service affirmed with a negative
outlook Sasol's ratings. The rating action followed Moody's
decision to place South Africa's Baa3 government issuer rating under
review for downgrade on 24 November 2017. The negative outlook
at the time also factored in the linkages between Sasol's credit profile
and the Government of South Africa's Baa3 rating on review for downgrade.
Consequently, the change in Sasol's outlook to stable from
negative also embeds Moody's view that various downside risk factors
for the Government of South Africa's Baa3 rating have waned over the past
four months and therefore their negative transmission considerations to
Sasol have also reduced. At the same time, the stable outlook
on Sasol's ratings also acknowledges the company's strong
credit profile relative to the government of South Africa and other non-financial
corporates in South Africa rated at the same level.
Similarly, the affirmation of Sasol's ratings with a stable
outlook considers that linkages with the Government of South Africa's
rating should begin to reduce, as Sasol's credit profile strengthens
and geographic diversification improves when LCCP starts production and
begins to contribute to EBITDA generation in 2018. Until such time,
Sasol's geographic concentration risk to South Africa exposes the company
to fiscal regime risk as a result of its significant domestic cash flow
generation and asset concentration.
Moody's will continue to closely monitor that the completion and
commissioning phases of Sasol's LCCP goes according to plan.
Any material deviation from the plan that could have a significant bearing
on Sasol's deleveraging trajectory could lead to downward pressure
on the company's rating and/or outlook. The rating agency,
however, does recognize Sasol's ability to withstand a degree
of credit deterioration given its strong positioning within the Baa3 rating
category.
WHAT COULD CHANGE THE RATINGS - UP/DOWN
BARLOWORLD LIMITED
We do not expect any further upward rating action as Barloworld's rating
is likely to be constrained at the same level as South Africa's government
bond rating given that the bulk of Barloworld's cash flows and operational
exposure is derived in South Africa and the rest of Africa.
Subject to the government of South Africa's bond rating, Moody's
would consider an upgrade if Barloworld: (1) is able to grow in
size and geographic diversification, while maintaining its financial
performance under challenging operating conditions; (2) adjusted
debt/EBITDA were to fall below 2.0x; (3) EBIT / interest increases
above 4.0x; and (4) maintains a positive and sustainable free
cash flow position.
Pressure on the ratings would develop following: (1) a downgrade
of the government of South Africa's bond rating; (2) weakened operating
performance, to the extent that the revenue and operating margin
declines and translates into weaker debt protection measures such that
debt / EBITDA rises above 3.0x or EBIT/ interest expense falls
below 2.5x for an extended period of time; and (3) the deterioration
of the company's liquidity risk profile.
THE BIDVEST GROUP LIMITED
Moody's would consider an upgrade if: (1) Bidvest is able to grow
in size and geographic diversification; (2) Moody's adjusted
gross debt to EBITDA is materially under 3.0x on a sustainable
basis; (3) Moody's adjusted EBITA to interest expense is well
above 4.0x; and (4) Bidvest maintains positive sustainable
free cash flow.
Moody's would consider a downgrade if one or a combination of the following
occurs: (1) erosion in operating performance or higher debt levels
such that Moody's adjusted EBITA to interest expense remains sustainably
below 3.5x or Moody's adjusted gross debt to EBITDA trends
sustainably above 3.0x; (2) there is failure to maintain a
good liquidity profile with sizable cash balances; and (3) free cash
flows are negative.
FORTRESS REIT LIMITED
We do not expect any further upward rating action as Fortress' rating
is likely to be constrained at the same level as South Africa's government
bond rating given that the bulk of Fortress' net income and property exposures
are derived in South Africa.
Any positive rating action would further depend on: (1) the company
continuing to exhibit growing revenues, improving operating margins
and demonstrating prudent operating policies; (2) leverage,
as measured by adjusted total debt/gross assets, remaining at around
25%; (3) fixed charge cover remaining above 3.0x;
and (4) the percentage of unencumbered assets to total assets demonstrating
an increasing trend over time.
Fortress' rating would come under downward pressure in the event of any
of the following: (1) South Africa's government bond rating is downgraded
from Baa3; (2) Fortress fails to address near term debt maturities
in a timely manner; (3) there is increasing reliance on income and/or
asset value from listed investments; (4) there are debt financed
acquisition or adverse changes in its portfolio, such that leverage
(in terms of adjusted total debt to gross assets) is trending towards
35%, or fixed charge coverage approaches 2.5x;
or (5) there are unexpected operating difficulties that negatively affect
operational performance or cash flows.
GROWTHPOINT PROPERTIES LIMITED
As a result of the high degree of rating linkage to the South African
government bond rating, any future rating pressure (either positive
or negative) on Growthpoint's ratings and outlook will have to be considered
in the context of the South African long-term bond rating position
and outlook at the time.
Any positive rating action would further depend on strengthening financial
metrics, such that: (1) leverage as measured by debt to gross
assets is around 35% on a sustainable basis; (2) fixed charge
cover trends towards 3.0x; and (3) the level of unencumbered
assets to gross assets improves towards 40% while maintaining the
level of secured debt to gross assets below 25%.
Growthpoint's rating would come under downward pressure in the event of
any of the following: (1) the company's liquidity risk profile deteriorates;
(2) there are unexpected difficulties integrating acquisitions that negatively
impact operational and cash flow performance; (3) leverage in terms
of total debt to gross assets trends towards 40%; (4) fixed
charge coverage (as measured by EBITDA to interest expense) trends towards
2.0x; (5) secured debt to property assets exceeds 30%
or there is a material decline in unencumbered assets from the current
levels.
IMPERIAL GROUP LTD
Moody's would consider an upgrade if Imperial were able to: (1)
materially grow its offshore operations into markets with stronger credit
profiles relative to South Africa; (2) maintain a retained cash flow
to net debt ratio above 25%, on a sustainable basis;
(3) maintain stable and improving operating margins; (4) achieve
increased debt protection levels, such that Imperial's (funds from
operations + interest expense)/interest expense were to exceed 4.0x
on a sustainable basis.
The credit metrics relative to guidance incorporates some flexibility
to accommodate a range of strategic initiatives including debt funded
acquisitions. Any debt funded acquisitions would nevertheless have
to be assessed in terms of its impact on Imperial's business risk profile,
overall capital structure and how it fits strategically in the Group.
Negative pressure could be exerted on the ratings or outlook of Imperial
as a result of: (1) weakness in Imperial's operating performance,
resulting in lower debt protection measures, with (funds from operations
+ interest expense)/interest expense sustainably below 4.0x,
or lower operating margins; (2) an average retained cash flow/net
debt ratio that trends below 20% on a prospective basis,
considering past and expected future performance; (3) debt protection
measures weakening; (4) a failure to adjust financial policies and
cost structure such that Imperial generates positive free cash flow on
a sustained basis through conservative capital expenditure and adjusted
shareholder remuneration policies.
MERCEDES-BENZ SOUTH AFRICA LIMITED
Given the cyclicality of the industry and technological challenges facing
companies in the industry, we do not anticipate any upward movement
on Daimler's rating during the intermediate term. Despite the company's
strong credit metrics, the (P)A2 rating should remain appropriate
given the long-term cyclicality in the global passenger vehicle
markets. This rating level can also accommodate a temporarily elevated
capex and R&D spending. An upgrade of Daimler's ratings would
require a sustained strong operational and financial performance through
a cyclical downturn.
Upward pressure on the ratings could occur should Daimler demonstrate
continued high earnings and cash generation levels on a sustained basis,
while at the same time: (1) maintaining its brand equity value;
(2) successfully introducing additional new models and variants;
(3) defending its strong market share position in the premium car markets;
(4) defending its technological leadership positioning; (5) meeting
the required emission standards; and (6) improving its liquidity
coverage beyond the current level.
The (P)A2 ratings could come under pressure should: (1) Daimler
exhibit a sustained negative market share development in its key markets;
(2) FCF generation is negatively impacted by a more aggressive financial
policy; (3) the company's EBITA margin falls below 7.0%
for two or more years in a row; (4) its leverage (debt/EBITDA) exceeds
2.0x on a sustainable basis; (5) the group's liquidity profile
weakens; or (6) if there are any emission-related issues that
would lead to significant fines, or other remediation measures,
which is currently not part of our assumptions.
REDEFINE PROPERTIES LIMITED
As a result of the high degree of rating linkage to the South African
government bond rating, any future pressure on Redefine's ratings
and outlook will have to be considered in the context of the South African
long term bond rating position and outlook at the time.
Subject to the South African government bond rating, Moody's would
consider an upgrade if: (1) the portfolio size and diversification
materially improves; (2) good track record as a rated entity is maintained;
(3) leverage, defined as adjusted total debt/gross assets,
is maintained sustainably below 35% and fixed charge coverage above
3.0x on a sustained basis; and (4) ratio of secured debt/property
assets falls below 25%.
Moody's would consider a downgrade if one or a combination of the following
occurs: (1) adjusted total debt/gross assets exceeds 40%
on a sustained basis; (2) fixed charge coverage trends below 2.5x;
(3) the ratio of secured debt/property assets remains above 30%;
(4) unexpected difficulties integrating acquisitions arise, having
a negative impact on the operational performance or cash flows of the
company; and (5) there is a deterioration of Redefine's liquidity
risk profile.
TELKOM SA SOC LIMITED
Moody's would consider an upgrade if: (1) Telkom is successful in
its turnaround strategy to diversify the business away from the structural
decline in voice revenues; and (2) the company right sizes its cost
base and demonstrates that its mobile business remains profitable such
that the company's consolidated EBITDA margin is on an improving trajectory
above 30% on an adjusted basis.
Negative pressure on Telkom's rating or outlook will be prompted by:
(1) higher-than-expected competitive threats or execution
challenges in its mobile offering or bundled services that leads towards
further operating margin declines; (2) the EBITDA margin falls and
is sustained below 20% (for last twelve month to September 2017
(LTM Sept 2017)- 27.4%); (3) leverage,
as measured by debt/EBITDA, increases towards 2.5x (for LTM
Sept 2017 - 1.2x); and (4) retained cash flow/total
debt is below 25% (for LTM Sept 2017 - 52.6%)
on a sustained basis as a result of higher debt levels or dividend distribution.
TRANSNET SOC LTD.
An upgrade is unlikely at this time given the credit linkages that exist
between the government of South Africa's sovereign credit worthiness and
that of Transnet, and our expectations that Transnet's capital expenditure
programme and sizable funding needs will result in a sustained high level
of leverage as defined by debt/EBITDA and negative free cash flow.
Over the medium term, the key requirements for positive rating pressure
would be a clear path towards positive free cash flow generation and material
deleveraging. This, together with improving operational metrics
could allow the ratings to be placed one notch higher than the South African
sovereign.
Moody's could also downgrade Transnet's rating and BCA if the company
does not deliver sufficient growth in funds from operations (FFO) to offset
its debt-funded capital expenditures, such that: (1)
consolidated FFO/debt is sustainably below 10%; or (2) (FFO
+ interest expense)/interest expense is below 2.0x on a sustained
basis; or (3) such a failure to deliver could arise if Transnet's
volumes were to fall due to the return of poor trade conditions that tariff
rises were unable to offset; and/or Transnet were to embark on a
debt-financed capital expenditure programme that was not matched
by accompanying demand and growing operating cash flows.
Furthermore, Transnet's financial policies and operating performance
may be challenged in the next 12 to 18 months by government policies to
support or stimulate economic growth and address high unemployment;
and a continued weak economic environment, which could constrain
Transnet's revenue growth.
HYPROP INVESTMENTS LIMITED
We do not expect any further upward rating action as Hyprop's rating is
likely to be constrained at the same level as South Africa's government
bond rating given that the bulk of Hyprop's net income and property exposure
are derived in South Africa.
Any positive rating action would further depend on: (1) the company
continuing to grow scale with stable operating margins and broadening
its geographic footprint into jurisdictions with strong credit profiles;
(2) following prudent financial and operating policies; (3) maintaining
overall strong liquidity profile with ample headroom on its covenants;
and (4) maintaining leverage - as measured by adjusted total debt/gross
assets - below 30% on a sustainable basis.
Hyprop's rating would come under downward pressure in the event of any
of the following: (1) South Africa's government bond rating is downgraded
from Baa3; (2) Hyprop fails to maintain an adequate liquidity profile;
(3) there is a debt-financed acquisition or change in capital structure,
such that leverage in terms of adjusted total debt/gross assets is trending
above 35% or fixed-charge coverage trends below 3.0x
on a sustainable basis; or (4) there are unexpected operating difficulties
that negatively affect operational performance or cash flows.
SASOL LIMITED
Downward pressure on Sasol's rating would likely arise due to: (1)
delays or unforeseen costs associated with its Lake Charles Chemicals
Project; (2) a significant deterioration of debt protection measures,
such that its debt/equity is sustained above 50%, or debt/EBITDA
is sustained above 2.5x, after applying Moody's standard
adjustments to both credit metrics; (3) a significant increase in
country risk exposure, particularly in less politically stable regions;
(4) pressure on liquidity and financial flexibility, especially
as a result of increased capex, and/or shareholder remuneration;
or (5) a downgrade of the South African government rating to more than
one notch below Sasol's rating.
Upward pressure on the ratings is currently constrained until Sasol's
Lake Charles Chemical Plant ramps up to full-production,
shifting its exposure to international operations towards an even balance
with South Africa.
LIST OF AFFECTED RATINGS
Issuer: Barloworld Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Bidvest Group Limited, The
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Fortress REIT Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Growthpoint Properties Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
....Senior Unsecured Regular Bond/Debenture,
confirmed at Baa3
....Senior Unsecured Medium-Term Note
Program, confirmed at (P)Baa3
....Other Short Term Senior Notes, confirmed
at P-3
....Other Short Term Medium-Term Note
Program, confirmed at (P)P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Imperial Group Ltd
..Confirmations:
....Backed Short-term Issuer Rating,
confirmed at P-3
....Backed Long-term Issuer Ratings,
confirmed at Baa3
....Backed Senior Unsecured Regular Bond/Debenture,
confirmed at Baa3
....Backed Senior Unsecured Medium-Term
Note Program, confirmed at (P)Baa3
....Backed Subordinate Medium-Term
Note Program, confirmed at (P)Ba1
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Mercedes-Benz South Africa Limited
..Confirmations:
....Backed Senior Unsecured Medium-Term
Note Program, confirmed at (P)A2
....Backed Other Short Term Medium-Term
Note Program, confirmed at (P)P-1
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Redefine Properties Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
....Senior Secured Conv./Exch.
Bond/Debenture, confirmed at Baa3
....Senior Unsecured Medium-Term Note
Program, confirmed at (P)Baa3
....Other Short Term Medium-Term Note
Program, confirmed at (P)P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Telkom SA SOC Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Transnet SOC Ltd.
..Confirmations:
....Short-term Issuer Rating,
confirmed at P-3
....Senior Unsecured Regular Bond/Debenture,
confirmed at Baa3
....Backed Senior Unsecured Regular Bond/Debenture,
confirmed at Baa3
....Senior Unsecured Bank Credit Facility,
confirmed at Baa3
....Senior Unsecured Medium-Term Note
Program, confirmed at (P)Baa3
....Subordinate Medium-Term Note Program,
confirmed at (P)Ba1
....Senior Unsecured Commercial Paper,
confirmed at P-3
....Other Short Term Medium-Term Note
Program, confirmed at (P)P-3
..Outlook Action:
....Outlook changed to Stable from Rating
under Review
Issuer: Hyprop Investments Limited
..Confirmations:
....Long-term Issuer Rating,
confirmed at Baa3
....Short-term Issuer Rating,
confirmed at P-3
..Outlook Action:
....Outlook changed to Negative from Rating
under Review
Issuer: Sasol Limited
..Affirmations:
....Long-term Issuer Ratings,
affirmed Baa3
....NSR long-term Issuer Rating,
affirmed Aaa.za
....Short-term Issuer Ratings,
affirmed P-3
....NSR short-term Issuer Rating,
affirmed P-1.za
..Outlook Action:
....Outlook changed to Stable from Negative
Issuer: Sasol Financing International Limited
..Affirmation:
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa3
..Outlook Action:
....Outlook changed to Stable from Negative
The principal methodology used in rating Sasol Limited and Sasol Financing
International Limited was Global Integrated Oil & Gas Industry published
in October 2016.
The principal methodology used in rating Imperial Group Ltd was Global
Surface Transportation and Logistics Companies published in May 2017.
The principal methodology used in rating Barloworld Limited was Retail
Industry published in October 2015.
The principal methodology used in rating Hyprop Investments Limited,
Fortress REIT Limited, Redefine Properties Limited and Growthpoint
Properties Limited was Global Rating Methodology for REITs and Other Commercial
Property Firms published in July 2010.
The principal methodology used in rating The Bidvest Group Limited was
Business and Consumer Service Industry published in October 2016.
The principal methodology used in rating Mercedes-Benz South Africa
Limited was Automobile Manufacturer Industry published in June 2017.
The methodologies used in rating Transnet SOC Ltd. were Global
Surface Transportation and Logistics Companies published in May 2017,
and Government-Related Issuers published in August 2017.
The methodologies used in rating Telkom SA SOC were Telecommunications
Service Providers published in January 2017, and Government-Related
Issuers published in August 2017.
Please see the Rating Methodologies page on www.moodys.com
for a copy of these methodologies.
Moody's National Scale Credit Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale credit ratings in that they are
not globally comparable with the full universe of Moody's rated entities,
but only with NSRs for other rated debt issues and issuers within the
same country. NSRs are designated by a ".nn"
country modifier signifying the relevant country, as in ".za"
for South Africa. For further information on Moody's approach to
national scale credit ratings, please refer to Moody's Credit rating
Methodology published in May 2016 entitled "Mapping National Scale Ratings
from Global Scale Ratings". While NSRs have no inherent absolute
meaning in terms of default risk or expected loss, a historical
probability of default consistent with a given NSR can be inferred from
the GSR to which it maps back at that particular point in time.
For information on the historical default rates associated with different
global scale rating categories over different investment horizons,
please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1113601.
The Local Market analyst for Sasol Limited and Sasol Financing International
Limited is Douglas Rowlings, +971 (423) 795-43.
The Local Market analyst for Imperial Group Ltd and Transnet SOC Ltd.
is Dion Bate, +971 (423) 795-04.
The Local Market analyst for Redefine Properties Limited and Growthpoint
Properties Limited is Lahlou Meksaoui, +971 (561) 775-236.
COMPANY PROFILES
BARLOWORLD LIMITED
Barloworld, headquartered in South Africa, is a leading distributor
and after-sales support provider of heavy equipment and motor vehicles
for leading international brands across Southern African markets,
Russia and Iberia. It also provides integrated rental, fleet
management, product support and logistics solutions. The
core divisions of the group comprise: (1) Equipment which provides
end to end solutions across the value chain on behalf Caterpillar Inc.
to the mining, construction, industrial sectors; (2)
automotive which operates the motor retail, car rental, and
fleet management services; and (3) logistics which provide logistics
management transport and supply chain optimisation.
THE BIDVEST GROUP LIMITED
Founded in 1988 and based in Johannesburg, South Africa, The
Bidvest Group Limited is a service, trading and distribution company
with operations in South Africa, Namibia, United Kingdom and
the Republic of Ireland. Its businesses operates nine divisions:
Automotive, Commercial Products, Electrical, Financial
Services, Freight, Office & Print, Services,
Bidvest Namibia (Namibia Commercial and Fisheries) and Bidvest Corporate
(property portfolio and associate investments). On 30 May 2016,
Bidvest unbundled its international Foodservices business making it a
predominantly South African focused company.
For the last twelve months to 31 December 2017 (LTM Dec 2017), Bidvest
reported revenues of ZAR75 billion (US$5.6 billion) and
Moody's adjusted EBITDA of ZAR9.1 billion (US$0.7
billion).
FORTRESS REIT LIMITED
Fortress REIT Limited is a hybrid Real Estate Investment Trust listed
on the Johannesburg Stock Exchange (JSE). Fortress owns and operates
commercial properties across South Africa, as well as invests in
listed property securities in South Africa and Europe. Fortress'
direct properties comprise predominately of regional retail centers close
to public transport nodes and logistics warehouses across South Africa.
GROWTHPOINT PROPERTIES LIMITED
Growthpoint Properties Limited was established in 1987 and is the largest
primary listed Real Estate Investment Trust by gross assets (ZAR131.9
billion or US$10.7 billion) and by market capitalisation
(ZAR80.1 billion or US$6.8 billion as of 25 March
2018) in South Africa. Its activities focus on a portfolio of 463
retail, office and industrial properties that are geographically
diversified across South Africa. Growthpoint also holds a 65.1%
controlling stake in Growthpoint Properties Australia Ltd (Baa2 stable
- backed senior secured), which currently owns 56 properties
valued at ZAR31.2 billion (US$2.65 billion) and a
50% of the V&A Waterfront in Cape Town valued at ZAR7.2
billion (US$0.6 billion). Growthpoint increased its
stake in Globalworth Real Estate Investments Limited (Ba1 positive) to
29%, which owns a EUR1.8 billion property portfolio
consisting of offices, industrial properties, a residential
property complex and developments in Romania and Poland.
IMPERIAL GROUP LTD
Imperial Holdings Limited is the 100% owner of Imperial Group Ltd
and is the largest private sector transport and mobility group in South
Africa. Incorporated in 1946, Imperial operates in Africa,
the UK, Europe, USA, South America and Australia.
Imperial's core activities include services relating to transportation
and mobility. In their broader context these activities include
logistics, car rental, motor vehicle dealerships and distributorships,
aftermarket parts as well as financial services.
For the last twelve months to December 2017 (LTM Dec 2017), Imperial
reported revenues of ZAR123.6 billion ($9.3 billion)
and Moody's adjusted EBITDA of ZAR10.6 billion ($0.8
billion).
MERCEDES-BENZ SOUTH AFRICA LIMITED
MBSA is headquartered in Pretoria and has a manufacturing plant in East-London,
both locations are in South Africa. MBSA holds manufacturing and
/or distribution agreements from Daimler AG for the importation,
assembly and/or distribution of Mercedes-Benz Passenger Cars and
smart product ranges, as well as commercial vehicles for Mercedes-Benz,
Freightliner, Fuso and Western Star. It also has general
distribution agreements to sell commercial vehicles to Malawi, Mozambique,
Zimbabwe and Zambia through approved distributors in the respective countries.
Daimler is one of the world's leading premium passenger car manufacturers
through its highly valuable Mercedes-Benz Cars premium brand and
a global leader in the medium and heavy trucks market with solid market
shares in Europe, Brazil, NAFTA and Japan.
REDEFINE PROPERTIES LIMITED
Redefine Properties Limited is one of the largest commercial real estate
investment trust (REIT) listed on the Johannesburg Stock Exchange (JSE)
in South Africa by total reported assets (ZAR91.5 billion ($6.9
billion) as at 31 August 2017. Its activities include direct investments
in property assets as well as investments in the listed securities of
other commercial property investment companies. Redefine's offshore
property exposure is held through its key investments in RDI REIT PLC
(29.8%) in the UK, Cromwell Property Group (3.1%)
and Northpoint Tower (50% joint venture) in Australia; and
its investment in Echo Polska Properties (39.5%).
TELKOM SA SOC LIMITED
Telkom is the dominant South African fixed-line and the fourth
incumbent mobile operator which controls approximately 2.8 million
telephone access lines, most of which are connected to digital exchanges,
and 4.4 million active mobile subscribers, representing around
5% of the South African mobile market. As of 30 September
2017, the company has the largest fibre network across South Africa
(approx. 80% of the South African fibre network) supporting
more than a million broadband subscribers.
Telkom is listed on the Johannesburg Stock Exchange and is 39.3%
owned by the South African Government, 11.9% by Public
Investment Corporation (PIC) and the remaining 48.8% is
free float, as of 30 September 2017.
TRANSNET SOC LTD.
Transnet SOC Ltd is a state-owned limited liability company,
operating the main port capacity, the national rail network and
freight railways, and the multi-product hydrocarbon pipeline
network of South Africa. All activities for the last twelve months
to 30 September 2017 (LTM H1 2017) were profitable, with rail activities
accounting for 58% of group EBITDA as reported (excluding intercompany
eliminations and specialist units), ports for 32%,
and the pipeline business for 10%.
Transnet is wholly owned by the government of South Africa, and
the company's Memorandum of Incorporation restricts Transnet from disposing
of: (1) the whole or substantially the whole of the undertaking
of Transnet; or (2) the whole or the greater part of the assets of
Transnet, without prior approval of the Minister of Public Enterprises.
As long as the government of South Africa is the majority shareholder
of the company, the Directors of Transnet are not entitled to apply
for the winding up of Transnet without the approval of the Minister of
Public Enterprises and the Minister of Finance.
HYPROP INVESTMENTS LIMITED
Hyprop is one of South Africa's largest Johannesburg Stock Exchange listed
specialist shopping centre Real Estate Investment Trust, and one
of South Africa's oldest listed property companies (since 1988).
Its activities include direct investments in predominately retail property
assets in South Africa, and a growing exposure to retail properties
in the rest of the Sub-Saharan Africa and more recently in Central
and Eastern Europe. Hyprop's head office is in Johannesburg,
South Africa.
SASOL LIMITED
Headquartered in Johannesburg Sasol is an international integrated chemicals
and energy company. Through its people, Sasol uses selected
technologies to safely and sustainably source, produce and market
chemical and energy products competitively to create superior value for
customers shareholders and other stakeholders.
Sasol is operationally and geographically diversified, with six
segments comprising two operating, three strategic and a group functions
division. Its operations span 33 countries, although approximately
47% of revenue and 65% of cash flow from operations for
the FYE 30 June 2017 was generated in South Africa. For the last
twelve months to 31 December 2017, Sasol generated revenue of ZAR173.4
billion ($11.7 billion) and EBITDA of ZAR56.7 billion
($3.2 billion), after applying Moody's standard definitions
and adjustments to both.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
The person who approved Sasol Limited, Sasol Financing International
Limited, Imperial Group Ltd, Barloworld Limited, Hyprop
Investments Limited, Fortress REIT Limited, Telkom SA SOC
Limited, The Bidvest Group Limited, Transnet SOC Ltd.,
Redefine Properties Limited and Growthpoint Properties Limited credit
ratings is David G. Staples, MD - Corporate Finance,
Corporate Finance Group, JOURNALISTS: 44 20 7772 5456,
Client Service: 44 20 7772 5454.
The person who approved Mercedes-Benz South Africa Limited credit
ratings is Matthias Hellstern, MD - Corporate Finance,
Corporate Finance Group, JOURNALISTS: 44 20 7772 5456,
Client Service: 44 20 7772 5454.
The relevant office for each credit rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each issuer/entity
page of the website.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Gianmarco Migliavacca
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
David G. Staples
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
