| Thu 30 Jun 2011, 16:06 | | RDF - Redefine Properties - News Release - Moody`s announces Redefine`s credit |
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RDF - Redefine Properties - News Release - Moody`s announces Redefine`s credit
rating
REDEFINE PROPERTIES LIMITED
Registration number 1999/018591/06
JSE share code: RDF
ISIN: ZAE000143178
("Redefine" or "the company" or "the group")
NEWS RELEASE - MOODY`S ANNOUNCES REDEFINE`S CREDIT RATING
Redefine is well positioned to access alternative unsecured funding markets such
as corporate bonds cost effectively, following the announcement of the company`s
credit rating assessment by Moody`s.
Redefine Financial Director, Andrew Konig, says the company is pleased with the
outcome of the first time credit rating from Moody`s, which classifies Redefine
as "investment grade with a stable outlook" on a global and national scale, and
ranks the company amongst the likes of AngloGold Ashanti, Gold Fields,
Growthpoint Properties, MTN Group and Naspers on the global rating.
Moody`s assigned a global long-term and short-term Issuer and Senior Unsecured
Ratings of Baa3 and Prime-3 (P-3) to Redefine. Concurrently, Moody`s has also
assigned long-term and short-term National Scale Ratings of A3.za and Prime-2.za
(P-2.za). The outlook on the ratings is stable. Moody`s defines obligations
rated Baa as subject to moderate credit risk, and are considered medium grade
and as such may possess certain speculative characteristics.
Moody`s says the ratings are underpinned by Redefine`s large portfolio of
predominantly South African properties with a good occupancy rate that produces
very high margins with relatively low volatility compared to its global peers.
The company has developed a diversified offshore property exposure via its
subsidiary Redefine Properties International Ltd, with property investments in
the UK, Germany, Switzerland and Australia.
The ratings also incorporate relatively strong credit metrics and the ratings
are supported by the company`s recurring, contractual rental income.
Furthermore, the company`s approach to development risk is conservative, with no
more than 5% of the total property portfolio`s assets representing developments
at any one time.
The stable outlook reflects Moody`s view that the South African economy is
emerging from recession and the property sector continues to improve. Moody`s
believes that Redefine will continue to produce steady rental income, make well-
conceived investments and produce good operating returns.
30 June 2011
Sponsor
Java Capital
Date: 30/06/2011 16:06:22 Produced by the JSE SENS Department.
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