Fitch Ratings has assigned Growthpoint Note Issuer Company (Pty) Limited's floating-rate notes National final ratings as follows:

- 537 million rand Class A1: 'AAA(zaf)'
- 125m rand Class B1: 'AA-(minus)(zaf)'
- 88m rand Class C1: 'A-(minus)(zaf)'
- 55m rand Class D1: 'BBB(zaf)'

Growthpoint Note Issuer Company is a South-African special purpose vehicle that issues four Classes of notes (Class A, Class B, Class C and Class D) to finance the acquisition of a loan provided to a bankruptcy- remote vehicle, Growthpoint Securitisation Warehouse Trust, secured by first-ranking mortgages over 36 commercial properties situated in SA.

This is the first issue under a 5 billion rand CMBS securitisation programme and the issuer may purchase new loans through the issue of further notes either under the existing series or under separate segregated series, subject to abiding by certain eligibility criteria and portfolio covenants.

"The ratings reflect the quality of the underlying collateral, available credit enhancement (CE), the servicing capabilities of Growthpoint Properties Limited, a hedging agreement, and the sound legal and financial structure of the transaction.

"CE for the Class A notes totals 60.1%, provided by the subordination of the Class B (9.30%), C (6.6%) and D (4.1%) notes and overcollateralisation of 40.1%. CE for the Class B notes totals 50.8%, provided by the subordination of the C (6.6%) and D notes (4.1%) and overcollateralisation of 40.1%. CE for the Class C notes equals 44.2%, provided by the subordination of the D notes (4.1%) and overcollateralisation of 40.1%," Fitch stated.

It added that ratings address the likelihood of investors receiving payment of interest according to the terms and conditions of the documentation and the full repayment of principal at legal final maturity.

I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge