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REAL PEOPLE INV HOLDINGS LTD - GCR Downgrades Real People's Ratings

Release Date: 07/10/2014 16:16
Wrap Text
GCR Downgrades Real People's Ratings

Real People Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1999/020093/06)
Bond Issuer Code: BIRP
(“Real People” or “Group”)


GCR DOWNGRADES REAL PEOPLE’S RATINGS

Real People announces that Global Credit Ratings(“GCR”) has,
on 7 October 2014, downgraded Real People’s national scale
issuer ratings to BB+(ZA)from BBB(ZA) in the long-term, and to
B(ZA) from A2 (ZA) in the short term. GCR has also downgraded Real
People’s international scale ratings to BB from BB+. A
negative outlook has been accorded to all ratings.

According to GCR, the downgrade is a reflection of their
expectation of further asset quality deterioration,
considering the difficult operating environment in which the
Group finds itself, which may place additional pressure on
Real People’s profitability and capital levels.
GCR have also considered Real People’s ability to raise
funding in a market where sentiment remains negative towards
unsecured lenders. According to GCR, despite the Group’s
current efforts in raising additional qualifying capital and
its ability to access offshore markets, its funding
constraints may lead to a contraction in Real People’s balance
sheet.

GCR have stated that the rationale for placing Real People on
negative outlook is driven by a potential further
deterioration in the macro-economic environment and Real
People’s ability to absorb any further losses. Further rating
action will also be dependant on the Group’s ability to
successfully raise additional qualifying capital and ease
funding pressures.

The GCR press release can be found on Real People’s website
(www.realpeoplegroup.co.za).


7 October 2014
Debt Sponsor

Rand Merchant Bank (A division of FirstRand Bank Limited)

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