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Sep 03, 2007:
Growthpoint Properties Limited has achieved a Moody's Investor Services rating in excess of the South African Government sovereign ceiling for the notes issued during its most recent commercial mortgage backed securitisation (CMBS) in November 2006.
All the notes issued under Series Three of Growthpoint Notes Issuer Company, the issuer company for Growthpoint Properties Limited, have been upgraded by Moody's Investor Services.
The notes, which were previously rated Aaa.za on a national scale, have been given an Aaa equivalent rating on a Global Local Currency (GLC) rating. The GLC ratings are a reflection of Moody's opinion on the transaction risks when applying global standards to transactions aspects such as expected loss, hedge counterparty risk, liquidity facility and any other structural features.
Growthpoint's notes rating upgrade follows Moody's application of its refined National Scale Ratings (NSR) methodology to all existing and new structured finance term transactions. The new structure was applied following consultation with market participants associated with the South African securitisation market.
The notes represent a 'whole business securitisation' or the CMBS of Growthpoint's own assets, as opposed to assets placed in a Special Purpose Vehicle in order to ring fence the assets from risk.
"This upgrade should assist Growthpoint in obtaining favourable rates in future debt funding locally and facilitate the possibility of offshore borrowings," says Stuart Snowball, CFO of Growthpoint Properties Limited.
