TUHF LIMITED - TUHF Limited - Credit Rating Announcement

TUHF Limited - Credit Rating Announcement

TUHF Limited
Incorporated in the Republic of South Africa
(Registration number 2007/025898/06)
Stock Code: TUHF02
ISIN Code: ZAG000165689
(“TUHF” or “the Issuer”)


CREDIT RATING ANNOUNCEMENT


The board of directors of TUHF in pleased to advise that on 30 July 2021, GCR Ratings (“GCR”) affirmed
the Issuer’s national scale long- and short-term Issuer ratings at BBB-(ZA) and A3(ZA), respectively. The
Rating Outlook has been revised from Negative to Stable.

GCR’s credit rating announcement (“Rating Announcement”) is publicly available on its website at:
https://gcrratings.com/announcements/gcr-affirms-tuhf-limiteds-bbb-za-a3za-long-and-short-term-
national-scale-ratings-outlook-stable/.

The change of outlook to Stable, from Ratings Watch Negative, reflects the ongoing improvement in
funding and liquidity after the recent completion of the Urban Ubomi (RF) Limited securitisation (R609
million) that has somewhat alleviated short-term refinancing risk. The affirmation of the ratings
incorporates the maintenance of sound capitalisation and improved loan collection levels (somewhat
easing asset quality pressure) following the mid-2020 slump amidst the COVID-19 pandemic, balanced
by medium-term risks that could still materialise in the form of persistently higher non-performing loans
(“NPLs”).

TUHF predominantly focusses on providing finance to property entrepreneurs for the purchase, and/or
conversion/refurbishment of buildings in the inner cities of South Africa and as such, has a niche market
focus, characterised by geographic, segment and obligor concentrations. However, the relatively small
size and mono-line operations are mitigated by TUHF’s long standing track record operating in inner city
property development and strong Environmental, Social and Governance (“ESG”) credentials that were
highlighted through the recently concluded securitisation, which was one of the first social bonds listed on
the Johannesburg Stock Exchange and classified under the Sustainability segment. As the demand for
these instruments grows, this could play a bigger role in TUHF’s longer-term growth objectives by
providing access to a more diverse set of lenders/funding sources and improve the cost of funding.


Johannesburg
29 July 2021

Debt Sponsor
Merchantec Capital

Date: 29-07-2021 12:10:00
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