{"id":13868,"date":"2012-08-24T15:10:50","date_gmt":"2012-08-24T13:10:50","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/text-fitch-assigns-liberty-group-limiteds-subordinated-debt-issue-azaf-rating\/"},"modified":"2012-08-24T15:10:50","modified_gmt":"2012-08-24T13:10:50","slug":"text-fitch-assigns-liberty-group-limiteds-subordinated-debt-issue-azaf-rating","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/text-fitch-assigns-liberty-group-limiteds-subordinated-debt-issue-azaf-rating\/","title":{"rendered":"TEXT-Fitch assigns Liberty Group Limited’s subordinated debt issue ‘A+(zaf)’ rating"},"content":{"rendered":"

\t\t<\/span><\/p>\n

(The following statement was released by the rating agency)<\/span><\/p>\n

<\/span><\/p>\n

Aug 24 – Fitch Ratings has assigned South Africa-based Liberty
\nGroup Limited’s (LGL, National IFS ‘AA(zaf)’\/Stable) issue of subordinated debt
\nsecurities a rating of ‘A+(zaf)’, in line with Fitch’s standard notching
\npractices.<\/p>\n

<\/span><\/p>\n

The ZAR1bn issue is part of the group’s active capital management and takes into
\naccount the refinancing of LGL’s current outstanding bond. This involves the
\nredemption of LGL’s outstanding ZAR2bn subordinated bond at 8.93% coupon,
\ncallable on 12 September 2012 with a maturity date of 12 September 2017. The
\nissue leads to a temporary increase in the group’s financial leverage from 14%
\nto 19% during the overlap period of August to September 2012. During this
\nperiod, LGL has two subordinated bonds, an existing bond of ZAR2bn and a new
\nbond of ZAR1bn. Thereafter the financial leverage ratios are expected to drop to
\n8%, which Fitch considers low for LGL’s rating.<\/p>\n

<\/span><\/p>\n

The issue is not callable and has its final maturity date on the 13 August 2017.
\nThe securities pay a fixed annual coupon of 7.67% semi-annually for 5 years. The
\nnotes have no interest deferral features or other loss absorption features.<\/p>\n

<\/span><\/p>\n

The subordinated bond has been structured for Tier 2 own funds eligibility
\naccording to the grandfathering provisions of the QIS2 specifications under the
\nSolvency Assessment and Management regime, South Africa’s equivalence of
\nSolvency II. According to Fitch’s methodology, this subordinated bond is
\nclassified as 100% capital due to regulatory override within Fitch’s risk-based
\ncapital assessment and is classified as 100% debt regarding the agency’s
\nfinancial leverage calculations.<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

(The following statement was released by the rating agency) Aug 24 – Fitch Ratings has assigned South Africa-based Liberty Group Limited’s (LGL, National IFS ‘AA(zaf)’\/Stable) issue of subordinated debt securities a rating of ‘A+(zaf)’, in line with Fitch’s standard notching practices. The ZAR1bn issue is part of the group’s active capital management and takes into […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-13868","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=13868"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13868\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}