| Wed 23 Jan 2002, 0:00 | | Imperial Assigned Top Credit Rating |
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Imperial Holdings Limited
Share Code: IPL ISIN Code: ZAE000003620
Press Release
Johannesburg - Wednesday January 23, 2002
Transport and mobility group, Imperial Holdings Limited has just been
assigned a long term credit rating of zaAA+ from CA-Ratings, an affiliate of
Standard & Poor's.
This rating denotes that Imperial is viewed to exhibit very strong credit
strength relative to other South African obligors. Charl Kocks of CA-
Ratings confirmed that this is the highest ever credit rating given to a
South African business enterprise and South Africa's four largest banks are
rated two notches lower.
CA-Ratings has given Imperial a zaAA+ rating for its long-term debt,
indicating the group's very strong capacity to pay interest and repay
capital. Imperial's short-term debt was given an zaA1+ rating which is also
an excellent rating, indicating that Imperial presents an overwhelming
degree of safety regarding the timely repayment of its debt.
Mr Kocks said that compared to other companies listed on the JSE Securities
Exchange, Imperial is viewed to occupy an exceptionally high position.
"This is even more noteworthy when one considers that the transport and
mobility sector where Imperial is active, carries an above average industry
risk. The ratings are assigned after taking this fully into account."
The ratings report goes on to say that the extremely high ratings are
supported by the strong market shares of the different businesses within the
group, some of which are now active in Europe and over 14 other countries.
"In addition, the financial conservatism as well as the group design as a
`collection of businesses' adds financial flexibility that is far above the
norm for large industrial groups. This fact has become apparent after in-
depth investigation of the different divisions and their
interrelationships."
The ratings review comes as Imperial is considering approaching the debt
markets again under its domestic medium term note (DMTN) programme. In
August last year Imperial successfully raised a R800-million bond as part of
the R2,5-billion programme. Such was the appetite for Imperial's paper,
which carried a yield to maturity in March 2006 of 11,06%, that Imperial
increased the size of the issue.
Chief executive Bill Lynch said that the DMTN programme allowed Imperial to
tap into the market at appropriate times. "Imperial is able to access the
debt markets conveniently, availing itself of historically low interest
rates and the substantial institutional appetite for the yield enhancement
offered by corporate issues. Our experience with raising capital in this way
has been very positive."
Imperial has been a leader in establishing a note programme and was only the
second non-parastatal (after Sasol) to register such a programme on the Bond
Exchange of South Africa (BESA). Imperial's bond, which has traded well,
has greatly enhanced the options in the debt markets at a time when the
demand for quality corporate paper and benchmarks is accelerating.
ends
Please note:
Imperial Holdings activities include a wide range of services relating to
motoring, car rental and tourism, transport, trucking, aviation leasing,
logistics and fleet management outsourcing, forklifts, and a comprehensive
related financial services arm supplying banking, short-term insurance and
life assurance. While these services combine to facilitate maximum synergy
between business entities, a decentralised management structure engenders
industry best practice. Management is empowered to develop each business
with entrepreneurship into unique business units within the strength and
support structures of the Imperial group.
Imperial employs 25 000 people at locations in 26 countries and had total
assets of R16,4-billion at June 25, 2001 and its revenues totalled R21,9-
billion.
Visit our websites- www.imperial .co.za and www.imperialtoday.co.za
ISSUED BY : PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF : IMPERIAL HOLDINGS LIMITED
FURTHER INFORMATION : PENELOPE GRACIE
CONTACT : OFFICE +27 (21) 434-6513
MOBILE 082-55-77-444
