| Fri 17 Jul 2020, 16:50 | | Letshego Holdings Limited - Credit Rating outlook |
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Letshego Holdings Limited - Credit Rating outlook
Letshego Holdings Limited
Incorporated in the Republic of Botswana
Registration number 98/442
(JSE Code: “BILETS”)
(“Letshego Holdings” or “the Company” or “the issuer”)
This announcement is being released on the Johannesburg Stock Exchange (“JSE”)
for purposes of complying with paragraph 7.46 of the JSE’s Debt Listings
Requirements in respect of Letshego Holdings Limited’s Note Programme.
Moody’s keeps Letshego Holdings Limited credit rating unchanged at
Ba3(stable)outlook
Pursuant to the Terms and Conditions of the Letshego Holdings Limited
ZAR2,500,000,000.00 Medium Term Note Programme, Noteholders are advised that
Moody’s Investor Service (“Moody’s”) has affirmed that the Group’s current Ba2
Corporate Family Rating (CFR) and Ba3/Not Prime issuer rating remains unchanged,
and the Group’s outlook “stable”. (The rating action is in line with the
publication of Moody’s Finance Companies rating methodology issued on 10 December
2018)
Moody’s latest credit research analysing the Letshego Group notes, “Letshego's
CFR of Ba2 is driven by the company's high capital buffers and profitability,
supported by its low-cost franchise, and its developing diversification across
regional countries, which makes the company resilient to an adverse development
in any of its markets.”
Furthermore, the credit research confirms the Group’s “strengths are balanced
against Letshego's
(1) niche and concentrated business model reliance on payroll deductions for loan
repayment collections, (2) exposure to foreign exchange risk, (3) high asset
risk, and (4) dependence on wholesale funding, although the company is taking
actions to address this weakness.”
The complete and official Moody’s Credit Research release is available on the
Issuer’s website on links https://www.letshego.com/investor-publication-
types/credit-ratings or www.moodys.com
The detailed Credit Opinion is available on the Issuer’s website
https://www.letshego.com/investor-publication-types/credit-ratings or on Moody’s
website:
www.moodys.com
17 July 2020
Debt sponsor in South Africa
Kea Sape: 0117215594 or kea.sape@standardbank.co.za
1
The Standard Bank of South Africa Limited, acting through its Corporate and
Investment Banking division
2
Date: 17-07-2020 04:50:00
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