GCR Accords An Indicative Rating To Hospitality Property Fund Senior Secured Notes

Global Credit Ratings has accorded an indicative, public long term ‘A(ZA)(sf)’ rating to the R150m Senior Secured Floating Rate Notes due in April 2016 to be issued by Hospitality Property Fund Limited in April 2013.

This is according to Emma- Jane Fulcher, head of Structured Finance at GCR, who says the Senior Notes are to be issued under the Issuer’s R2bn DMTN Programme arranged by Rand Merchant Bank (‘RMB’). “The rating of the Senior Notes is derived by applying a notching up approach, starting from the long term senior unsecured corporate credit rating of the Issuer.”

“Based on fundamentals and prospects of the Issuer, GCR has accorded a long term ‘BBB-(ZA)’ national scale corporate credit rating to the Issuer.A rating uplift of 4 national scale notches is deemed appropriate in this particular transaction, given the “Excellent recovery prospects” equating to a ‘A(ZA)(sf)’ rating on the transaction,” explains Fulcher.

GCR analysed the transaction by applying its Global Structured Finance Rating Criteria and its Global Structurally Enhanced Corporate Bonds Rating Criteria.

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