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JD GROUP LIMITED - STRONG RATING FOR JD GROUP FROM CA-RATINGS
JD GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/009108/06)
Share code: JDG
ISIN: ZAE000030771
("JD Group" or "the Group")
STRONG RATING FOR JD GROUP FROM CA-RATINGS
CA-Ratings announced today it has assigned a high rating of "Strong" in both the
short-term and long-term to JD Group Limited after a full interactive
investigation based on the normal rating mandate. The ratings are on the
national scale for South Africa, and are "zaA" long-term and "zaA2" short-term,
with a stable outlook for the three-year time horizon.
In their report CA-Ratings states:
"Compared to other companies listed on the JSE Securities Exchange, JD Group is
viewed to occupy a position significantly above the median. (The long-term
rating is the fourth notch in the area called South African investment grade.)
This is even more noteworthy when considering that the furniture sector where JD
Group is active carries an above-average industry risk. The ratings are assigned
after taking this fully into account.
The strong ratings are supported by the significant market share of the group,
also now active in Europe. This is enhanced by an extremely experienced
management team. In addition, the financial conservatism and astute handling of
the financing aspect add financial flexibility that is above the norm for retail
groups. The strong financial systems also ensure a high level of efficiency.
JD Group is very well placed to benefit from the strong spending on semi-durable
goods in South Africa and from its participation in the consolidation of players
in what has been an overtraded market. Its performance to date bears this out.
The JD management is experienced in extending credit to their customers and they
manage their debtors" book astutely and conservatively. In addition, lower
inflation and interest rates have a positive effect on the credit market that
should favourably impact the quality of JD"s debtors book even further.
A constraint on the rating is stated to be the high level of competition
remaining in the market, a relatively high-risk credit market, still maturing
foreign operations and the continuing integration of Profurn.
The ratings are of special significance also in the wake of serious collapses of
other players in this sector, as well as the apparel sector. The credit
strength of JD Group as measured is a very strong differentiating factor."
28 October 2003
ENDS
Enquiries:
JD Group Ltd
Jan Bezuidenhout
011 405 0205
CA-Ratings:
Charl Kocks
011 442 4230
College Hill:
Johannes van Niekerk
Sam Denoon-Stevens
011 447 3030
Background note
CA-Ratings is the sole wholly South African credit ratings agency. It has been
operating in the South African and southern African markets since 1993, and is
unashamedly committed to Africa.
CA-Ratings applies the same criteria and the same methods as does the largest
ratings agency in the world. Its ratings are assigned either on the South
African national scale (running from zaD to zaAAA) or on the international scale
(from D to AAA). The ratings of JD Group Limited have been requested on the
national scale, which provides maximum value and usefulness to South African
users since it offers the clearest differentiation against other South African
issuers and corporate entities.
The ratings assigned to JD Group Limited fully comply with the regulations to
the CISCA Act, No 45 of 2002 (as do all ratings issued by CA-Ratings). CA
Ratings is a ratings agency approved under that Act. This means that investors
falling under the Collective Investment Schemes Control Act (such as unit
trusts) may invest in debt instruments issued by JD Group Limited to a maximum
extent of 10% of that investor"s portfolio if the debt is not a money market
instrument, and to a maximum of 5% if the debt is a money market instrument.
Date: 28/10/2003 01:30:03 PM Produced by the JSE SENS Department
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