NQABA FINANCE 1 (RF) LIMITED - Nqaba - Ratings by Moody's Investor Services

Nqaba -  Ratings by Moody's Investor Services

Nqaba Finance 1 (RF) Limited
(Incorporated with limited liability in South Africa under registration number 2005/040050/07))
Bond Issuer Code: NQABA
(“Nqaba” or the “Issuer”)

Issued Notes:
Bond Code:                                ISIN
NQ1A10                                    ZAG000077686
NQ1A17                                    ZAG000105941
NQ1A18                                    ZAG000115569
NQ1A19                                    ZAG000126509
NQIA21                                    ZAG000136664
NQIA22                                    ZAG000136722
NQ1B10                                    ZAG000077702
NQ1B15                                    ZAG000105966
NQ1B16                                    ZAG000115577
NQ1B17                                    ZAG000126467
NQ1C10                                    ZAG000077694
NQ1C15                                    ZAG000105958
NQ1C16                                    ZAG000115585
NQ1C17                                    ZAG000126459
NQF1D5                                    ZAG000077678
NQF1D7                                    ZAG000105974
NQF1D8                                    ZAG000136656

RATING BY MOODY’S INVESTOR SERVICES (“MOODY’S”)

Following the deregistration of Fitch Southern Africa (“Fitch”) as a credit rating agency by the South
African Financial Services Board (“FSB”) in September 2015, and the subsequent inability of Fitch to
issue credit ratings for regulatory purposes in Southern Africa, the FSB has deemed the South African
RMBS notes issued by Eskom Finance Company’s (“EFC”) Nqaba vehicle as rated by Fitch as valid for
regulatory purposes only up until the 30 November 2016.

EFC has therefore obtained a new credit rating from Moody’s. Moody’s has assigned definitive long-term
credit ratings to the notes issued by Nqaba as detailed below:

- ZAR 115M Class A10 Secured Fixed Rate Note due May 2052, Assigned A1(sf) / Aaa.za(sf)
- ZAR 302M Class A17 Secured Floating Rate Note due May 2050, Assigned A1(sf) / Aaa.za(sf)
- ZAR 318M Class A18 Secured Floating Rate Note due May 2049, Assigned A1(sf) / Aaa.za(sf)
- ZAR 303M Class A19 Secured Floating Rate Note due May 2050, Assigned A1(sf) / Aaa.za(sf)
- ZAR 210M Class A21 Secured Floating Rate Note due May 2051, Assigned A1(sf) / Aaa.za(sf)
- ZAR 195M Class A22 Secured Floating Rate Note due May 2049, Assigned A1(sf) / Aaa.za(sf)
- ZAR 11M Class B10 Secured Fixed Rate Note due May 2052, Assigned A3(sf) / Aaa.za(sf)
- ZAR 40M Class B15 Secured Floating Rate Note due May 2050, Assigned A3(sf) / Aaa.za(sf)
- ZAR 32M Class B16 Secured Floating Rate Note due May 2049, Assigned A3(sf) / Aaa.za(sf)
- ZAR 8M Class B17 Secured Floating Rate Note due May 2050, Assigned A3(sf) / Aaa.za(sf)
- ZAR 5M Class C10 Secured Fixed Rate Note due May 2052, Assigned Baa1(sf) / Aaa.za(sf)
- ZAR 25M Class C15 Secured Floating Rate Note due May 2050, Assigned Baa1(sf) / Aaa.za(sf)
- ZAR 32M Class C16 Secured Floating Rate Note due May 2049, Assigned Baa1(sf) / Aaa.za(sf)
- ZAR 5M Class C17 Secured Floating Rate Note due May 2050, Assigned Baa1(sf) / Aaa.za(sf)
- ZAR 5M Class D5 Secured Floating Rate Note due May 2052, Assigned Baa2(sf) / Aa1.za(sf)
- ZAR 30M Class D7 Secured Floating Rate Note due May 2050, Assigned Baa2(sf) / Aa1.za(sf)
- ZAR 24M Class D8 Secured Floating Rate Note due May 2051, Assigned Baa2(sf) / Aa1.za(sf)

The capital structure also includes an unrated subordinated loan of ZAR 290 million.
This transaction represents the first public securitisation transaction rated by Moody's backed by home
loans advanced by EFC to employees of Eskom Holdings SOC Limited (Ba1 under review for possible
downgrade) and its subsidiaries. The transaction originally closed in May 2006. The assets supporting the
notes, which amount to around ZAR 1,918.9 million, consist of South African prime residential home
loans extended to individuals and are backed by first economic lien mortgages on residential properties
located in South Africa.

The rating of the notes is based on an analysis of the characteristics of the underlying pool of home loans,
sector wide and originator specific performance data, protection provided by credit enhancement, the
roles of external counterparties and the structural integrity of the transaction.

The full report may be obtained from the Moody’s website, www.moodys.com.

1 December 2016

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)

Date: 01/12/2016 11:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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