Mustek Limited - Rating of Mustek Limited: Upgrade
MST
MST
Mustek Limited - Rating of Mustek Limited: Upgrade
MUSTEK LIMITED
Incorporated in the Republic of South Africa
(Registration number 1987/070161/06)
Share Code: MST & ISIN: ZAE000012373
("Mustek")
RATING OF MUSTEK LIMITED: UPGRADE
CA-Ratings has upgraded the rating symbol to zaBBB from the zaBBB- (on the South
African national scale) previously assigned to the long-term obligations of
Mustek Limited. The definition applicable to this symbol reads as follows:
"zaBBB indicates adequate capacity of the issuer to pay interest and repay
capital, relative to other South African obligors. It normally has adequate
protection parameters, but adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity to pay interest and repay capital
than debt in categories rated higher."
According to CA-Ratings analyses of companies listed on the JSE Securities
Exchange, this rating places Mustek Limited above the median in counterparty
strength, and underscores that in South African terms, Mustek is solidly of
investment grade.
The committee saw several factors remaining in support of the rating, such as
the fact that the Mecer brand has given Mustek the required market positioning
and a sustained large market share in South Africa; sustained margin improvement
(after taking increased international business into account); the continued
improvement in the financial flexibility of Mustek Limited; and increased
funding options as a result of the successful securitisations of the Mustek,
Rectron and Comztek trade receivables books.
7 April 2006
Date: 07/04/2006 04:28:09 PM Produced by the JSE SENS Department
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