SAPPI SOUTHERN AFRICA (PTY) LTD - Fitch downgrades SAPPI Southern Africa to 'A-(ZAF)'; Outlook Stable - SSA01-06
SSA01 SSA06 SSA05 SSA04 SSA02 201402200038A
Fitch downgrades SAPPI Southern Africa to 'A-(ZAF)'; Outlook Stable - SSA01-06
Sappi Southern Africa Proprietary Limited
(Incorporated in the Republic of South Africa)
Registration number 1951/003180/06
FITCH DOWNGRADES SAPPI SOUTHERN AFRICA TO 'A-(ZAF)'; OUTLOOK STABLE
Fitch Ratings has downgraded Sappi Southern Africa Ltd's (Sappi SA)
National Long-term rating and senior unsecured issue rating to 'A-
(zaf)' from 'A+(zaf)'. Fitch has affirmed the Short-term rating at
F1(zaf). The Outlook on the National Long-term rating is Stable.
Fitch reported that the downgrade reflects a review of the linkage
between Sappi SA and the weaker credit profile of its parent, Sappi
Ltd which weighs on Sappi SA's ratings. This is in line with Fitch's
revised parent-subsidiary methodology and therefore a technical
adjustment and not a reflection of the credit strength of the Sappi
SA business. Sappi Southern Africa has not changed the way it does
business and will continue to pursue its stated business objectives
as evidenced in all investor communications. As stated in our first
financial quarter results release, our financial year 2014 will show
improved profitability when compared to 2013. Going forward, we
expect each quarter to be better than the equivalent quarter a year
ago.
The Stable Outlook in the Fitch rating reflects the expectations that
Sappi SA and Sappi Ltd's key credit metrics will not materially
change in the next couple of years.
Date 20TH February 2014
Sponsor: Nedbank Capital, a division of Nedbank Limited (“Nedbank”)
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