Momentum Group Limited - Strong Debt Rating for Mo
Momentum Group Limited - Strong Debt Rating for Momentum
Momentum Group Limited
Registration number
1904/002186/06
("Momentum")
Strong Debt Rating for Momentum
The international credit rating agency Fitch Ratings (Fitch) has assigned
Momentum Group a National Insurer Financial Strength Rating of `AA+ (zaf)" and a
National Long-term Rating of `AA (zaf)". Momentum is a wholly owned subsidiary
of FirstRand Limited. According to Fitch: "Momentum"s rating reflects its
position within this group as an integrated financial services provider."
The Financial Strength Rating of AA+ reflects Momentum"s robust solvency
position from the perspective of policyholders while the Long Term Rating of AA
reflects the excellent solvency position from the perspective of other
creditors.
"We are pleased with the favourable credit rating assigned to Momentum", said EB
Nieuwoudt, Managing Director of the Momentum Group. According to Fitch: "The
ratings reflect Momentum"s strong business position in South Africa, solid
capital position, robust new business profit margins and very strong operating
performance."
Fitch continued: "The rulings made by the Pension Funds Adjudicator continue to
cause uncertainty in the South African life industry. ... Fitch believes that
compared to peers, Momentum has a relatively low exposure to the PFA rulings.
This is due to its low historical market share of retirement annuities. Fitch is
further comforted by Momentum"s pro-active and responsive attitude and range of
new generation products."
Nieuwoudt concluded: "Momentum Group commissioned the credit rating as part of
Momentum"s ongoing capital management programme. This rating enables Momentum
to be more flexible in our utilisation of alternative sources of capital which
might include the issuing of subordinated debt instruments."
Ends
21 November 2005
Contacts:
EB Nieuwoudt, Managing Director Momentum Group 012 - 671 8463
Asokan Naidu, CFO Momentum Group 012 - 673 7365
Gerhard Kruger, Head Capital Management Momentum Group 012 - 673 7211, 082 801
3576012 - 673 7211, 082 801 3576
Date: 21/11/2005 02:39:02 PM Produced by the JSE SENS Department
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