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CPV01-Credit Rating Affirmation, national scale upgrade
CPV Power Plant No.1 Bond SPV RF Ltd.
(Incorporated in the Republic of South Africa)
(Registration number 2012/176922/06)
Instrument Code: CPV01 ISIN: Z AG000104894
(“the Issuer”)
Moody's affirms Ba3 rating of CPV Power Plant No.1 Bond SPV
(RF) Limited, upgrades national scale rating to A3.za; outlook
stable
Noteholders are hereby advised that Moody's Investors Service
(Moody's) has affirmed the Issuer’s senior secured Ba3 global scale
rating (GSR) ZAR 1 billion note, and upgraded its national scale
senior secured rating to A3.za from Baa1.za, with the outlook
remaining stable.
Moody's has also corrected the description of the rated note to senior
secured from senior unsecured. The debt seniority for the note has
been updated to senior secured to reflect the fact that senior lenders
are granted security over the project assets, accounts and shares
under the finance documents. The rating history is not affected by
this update.
The agency’s rationale for the affirmation of the Ba3 GSR for the
Issuer reflects the benefit of (1) its long-term power purchase
agreement (PPA) with Eskom Holdings SOC Limited (Eskom, B3 negative),
(2) backstop support from the Government of South Africa in the event
Eskom fails to honour its obligations under the PPA; and (3) the base-
case forecast that the debt service coverage ratio (DSCR) will be
significantly above 1.40x for most of the project life.
The upgrade of the NSR to A3.za from Baa1.za solely reflects the
revised mapping for South Africa's NSR scale following the rating
action on the Government of South Africa. NSRs are assigned by
applying the published correspondence from GSRs. Where a single GSR
maps to multiple NSRs, rating committees assign higher or lower NSRs
to individual issuers and debts depending on their relative credit
position within the same GSR category, using the same methodologies as
were used to determine the GSRs themselves.
The detailed report may be viewed or accessed through the following
link :
www.moodys.com
Noteholders are also advised that Pele Green Energy, an existing 35%
shareholder in the project, has now purchased an additional 20%
shareholding from Concentrix Holdings SAS, which is in turn no longer
a shareholder.
06 April 2020
Debt Sponsor
The Standard Bank of South Africa Limited
Date: 06-04-2020 01:48:00
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