By Colin Anthony
What's up in credit markets
Healthy credit.
Netcare issued R600m of five year
floating rate notes at 185bp
over the three-month interbank
rate. The proceeds will help fund
Netcare’s local capex programme.
The company plans to spend
R2bn on capex in 2015, this includes
the roll-out of energy efficiency
programmes and the addition of
510 new beds.
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ISSUE 6 – SEPTEMBER 2015
Netcare is rated A by GCR (Global
Credit Ratings Co), with a positive
outlook. The rating is supported by
stable revenue performance, rising
margins, robust cash generation,
low debt levels and robust
debt serviceability.
The planned increase in debt to
fund the capex programme could
weaken Netcare’s credit profile
somewhat. However, gearing is
expected to remain conservative
over the medium-term.
BY LOSS OR BY DEFAULT?
Two property funds issued senior
secured floating rate notes.
Accelerate Property Fund issued
R452m of three-year notes at
175bp over the three-month
interbank rate. Emira Property Fund
raised R700m across multiple notes
of varying maturity, from six-month
CP to five-year term paper. The
two sets of notes are rated AA- and
AA respectively by GCR, on the
national scale.