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zaA+ LONG TERM AVIS SOUTHERN AFRICA LIMITED (Incorporated in the Republic of South Africa) Registration No: 1967/010320/06 ISIN No: ZAE 000013371 Share Code: AVS For further information call Grenville Wilson on (011) 923 3778 or Andrew Langham on (011) 923 3770 NEW RATING: AVIS SOUTHERN AFRICA LIMITED, zaA+ LONG TERM CA-Ratings announces that it has assigned a credit rating to Avis Southern Africa Limited after a full interactive investigation based on the normal rating mandate. The rating is on the national scale for South Africa, and is zaA+ long term, with a stable outlook for the three-year time horizon. Avis Southern Africa is the largest licensee of the Avis brand name outside the United States of America excluding the European licensor Avis plc. The rating symbol indicates that Avis Southern Africa is viewed to be investment grade in credit terms on the South African national scale. The symbol indicates that its ability to meet obligations is strong compared to other South African obligors. This is a very good result compared to corporate entities generally, but even better given the risks and pressures evident in the very competitive industry wherein Avis Southern Africa operates. Compared to other companies listed on the JSE Securities Exchange, Avis Southern Africa is viewed to occupy a very high position. This view is based on CA-Ratings opinions on all listed entities. Avis Southern Africa is the first car rental company in South Africa to be rated and to make its rating known publicly. The rental of passenger vehicles is an extremely competitive industry not only in South Africa, but also across the world. International competitor brands as well as national brands compete head on with Avis Southern Africa in South Africa, and yet the Avis Southern Africa brand has been able to achieve and retain market leadership over many years. This market leadership now also applies in Scandinavia, where Avis Southern Africa owns the Avis car rental licences in Norway and Sweden. This strength is ascribed partly to the commitment of very involved management and partly to the application of highly focused planning and cost control systems, especially within South Africa where Avis manages some 40 000 vehicles between their fleet services and car rental operations. Avis Southern Africa is very well placed to benefit from a possible tourism swing to Southern Africa, and its access to the Wizard car rental booking and control system has proven to be extremely valuable. Horizontal business line expansion in Scandinavia holds more volume potential. Management and systems are viewed to be of a high quality, with significant potential for the future. Strengths supporting the rating overall include the growth potential for fleet services, and the increase of revenue from the hard-currency off-shore activities. Constraints include the fact that the car rental business is a mature market in growth terms, and that the Black empowerment endeavours have yet to produce significant support for local profitability growth. "Issued by CA-Ratings, Johannesburg CA-Ratings is the sole South African (and indeed African) affiliate of Standard & Poor's. Standard & Poor's is the world's largest and most respected ratings agency, with over 135 000 ratings assigned or reviewed per year and a worldwide presence." "CA-Ratings applies the same criteria and the same methods as does S&P although its ratings are assigned on the South African national scale (running from zaD to zaAAA) rather than the global scale(from D to A- for South African entities), in order to provide greater value and usefulness to South African users. Contact person: Charl Kocks Tel (011) 442-4233, Fax (011) 442-4236 Pagers: (011) 780-8958 or 780-8963, Mobile: (082) 650-5836" Issued on behalf of Avis Southern Africa Limited by du Plessis Associates. dPA contact Helen McKane: Tel - (011) 728 4701, Fax - (011) 7282547 or e-mail - avis@dpapr.com
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