HOSPITALITY PROPERTY FUND LIMITED - HPAI - Notification of a Change to the Credit Ratings of the Issuer and the Senior Secured Notes

HPAI - Notification of a Change to the Credit Ratings of the Issuer and the Senior Secured Notes

Hospitality Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2005/014211/06)
Company code: HPAI
(“Hospitality” or the “Issuer”)

NOTIFICATION OF A CHANGE TO THE CREDIT RATINGS OF THE ISSUER AND THE SENIOR SECURED
NOTES

Noteholders are advised that GCR Ratings (“GCR”) has, on 8 February 2021, downgraded Hospitality’s
national scale long-term issuer rating to BBB-(ZA) from BBB(ZA). Concurrently, the ratings assigned to
the Senior Secured Notes issued by Hospitality were downgraded to A(ZA)(EL) from A+(ZA)(EL). The
national scale short-term issuer rating has been maintained at A3(za). The outlook on the credit ratings
has been maintained as Negative.

GCR considers HPF to be a core operating entity of Tsogo Sun Hotels Limited (“TSH” or “the group”),
being the direct owner of most of the group’s hotel properties and having a very high level of
operational integration. As such, HPF’s rating is equalised to the wider group.

The credit ratings downgrade reflects GCR’s assessment of the severe disruption to the hospitality
industry that has been experienced since March 2020 due to the COVID-19 pandemic, the ongoing
disruptions and uncertainties, the likely slow recovery and constrained longer-term outlook.

The market uncertainty is, however, counterbalanced by the leading market position enjoyed by TSH,
as well as its strong banking relationships that have provided funding support through the downturn.

The full report of the Ratings assigned by GCR has been made available at the below link:
http://www.hpf.co.za/investors/credit-rating.

9 February 2021

Debt Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 09-02-2021 12:30:00
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