| Wed 6 Mar 2002, 0:00 | | Aveng Rated As Sound By Rating Agencies |
|
Johannesburg - Wednesday, March 6 2002
Aveng Limited, the country's leading construction group has been awarded
excellent ratings for both its long term and short term debt by two of the
country's rating agencies.
Fitch Ratings has assigned Aveng an A (zaf) long term rating and a F1 (zaf)
short term rating while Global Credit Ratings (GCR) has given Aveng an A for
its long term debt and A1 for its short term debt. These ratings indicate
that the group has strong credit quality, sound protection factors and high
certainty of timely repayment.
According to Nicholas Brett, a senior analyst at GCR, the long-term rating
was supported by the group's size and leading position in the local
construction industry, as well as the dominant position both Alpha (cement)
and Trident (steel) hold in the domestic market. "The potential for
economies of scale afforded by the merging of the LTA and Grinaker
businesses into the powerful Grinaker-LTA, together with the group's diverse
client base, further supports the ratings"
Brett went on to say that management's undertaking to grow the business
organically in the short term was also viewed positively.
Fitch's report notes that the ratings reflect a group that is financially
sound, profitable, dominant in its industry, but still in a consolidation
phase following the acquisition of LTA, a former competitor. Despite the
acquisition being friendly and early indications that the entities are
integrating well, further evidence of settling down will be sought in the
2002 financial year.
"The group has three clearly defined business lines: construction, steel and
allied, as well as cement, all of which complement each other. Its
geographic diversification is not limited to South Africa, extending to
Africa, the Middle East, Australasia and South East Asia, focusing mainly on
developing countries."
Aveng's chief executive Carl Grim said that he was pleased with the ratings
as they demonstrated the soundness of the group. "We have grown
significantly in the past few years but still have a long way to go to
achieve our goals. The A long term rating and A1 short term rating reflect
a confidence in what has been achieved and establish a solid base for our
future endeavours."
Aveng's interim results for the six months to December 31, 2001 will be
released on Monday, March 11.
Please note:
Aveng Limited is a South African based group. It was listed on the JSE
Securities Exchange SA in July 1999 and is aiming to be a globally
competitive construction-related group focused principally on the developing
world.
Its major businesses are
Construction :
Grinaker-LTA (100% held) is South Africa's largest construction company with
particular expertise in providing construction services to the mining
industry. Its operations extend throughout Africa and into the Middle East.
McConnell Dowell (64% interest) is listed on the Australian and New Zealand
stock exchanges and provides specialised construction services to the energy
sector. Its operations extend throughout Australia/New Zealand and into
South East Asia.
Steel and Allied :
A cluster of steel centres and light manufacturing businesses which together
make Aveng South Africa's largest domestic steel beneficiator/merchant. The
two largest businesses are Trident Steel and Amalgamated Steele, both of
which are 100% held by Aveng.
Activity is strategically balanced around servicing the construction,
engineering and automotive sectors.
Cement :
Alpha is South Africa's second largest cement producer and its largest
concrete manufacturer and aggregate producer. Aveng holds 46% of Alpha and
the Swiss group Holcim, one of the world's leading suppliers of cement,
aggregates and concrete, holds 54%.
Operations extend into southern Africa where Alpha operates a number of
cement terminals. It has a controlling interest in Tanzania's largest
cement manufacturer.
Aveng's objectives are to achieve
PE rating in the top three of the BCE sector
Long-term real ROE of 10%
Minimum 25% of earnings in hard currencies
Visit our website - www.aveng.co.za
ends
ISSUED BY: PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF: AVENG LIMITED
FURTHER INFORMATION:PENELOPE GRACIE
CONTACT: OFFICE +27 (11) 447-3301
HOME +27 (11) 442-6674
MOBILE 082-55-77-444
