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Moody's downgrades Notes and assigns definitive ratings to two new Notes in Nqaba - NQA
NQABA FINANCE 1 (RF) LIMITED
Registration Number 2005/040050/07
(JSE Bond code: NQA)
(“NQABA")
Nqaba Finance 1 (RF) Limited– Moody's downgrades Notes and assigns definitive ratings
to two new Notes in Nqaba
Moody’s Investor Service (Moody’s) has announced that it has downgraded ten global scale ratings
(“GSR”) and six national scale ratings (“NSR”) of Nqaba, a South African residential mortgage?backed
securities (“RMBS”) transaction due to uncertainties in the effectiveness of transaction governance in
light of the evergreen revolving nature of the transaction, level of exceptions found in the Agreed-
Upon-Procedure, as well as the changes in the capital structure that took place in the refinancing as of
May 2019. Moody's has also assigned new ratings to Class A28 and Class B21, the two Notes issued
in May 2019, and confirmed four NSRs.
This action on existing ratings concludes Moody’s review for downgrade of Nqaba initiated on
27 May 2019 (http://www.moodys.com/viewresearchdoc.aspx?docid=PR_401522).
The transaction is a securitisation of South African prime mortgage loans mainly to employees from
the Eskom Group in South Africa. Mortgages are granted by Eskom Finance Company SOC Limited
(“EFC”, unrated), a subsidiary of the utilities company Eskom Holdings SOC Limited (“Eskom”; B2 LT
corporate family rating negative outlook, NSR Ba2.za).
List of Affected Credit Ratings:
....Rand 115M Class A10 Notes, Downgraded to Baa3 (sf); previously on May 27, 2019 A3 (sf)
Placed Under Review for Possible Downgrade
....Rand 115M Class A10 Notes, Confirmed at Aaa.za (sf); previously on May 27, 2019 Aaa.za
(sf) Placed Under Review for Possible Downgrade
....Rand 310M Class A24 Notes, Downgraded to Baa3 (sf); previously on May 27, 2019 A3 (sf)
Placed Under Review for Possible Downgrade
....Rand 310M Class A24 Notes, Confirmed at Aaa.za (sf); previously on May 27, 2019 Aaa.za
(sf) Placed Under Review for Possible Downgrade
....Rand 150M Class A25 Notes, Downgraded to Baa3 (sf); previously on May 27, 2019 A3 (sf)
Placed Under Review for Possible Downgrade
....Rand 150M Class A25 Notes, Confirmed at Aaa.za (sf); previously on May 27, 2019 Aaa.za
(sf) Placed Under Review for Possible Downgrade
....Rand 11M Class B10 Notes, Downgraded to Ba1 (sf)/Aa2.za (sf); previously on May 27, 2019
Baa2 (sf)/Aaa.za (sf) Placed Under Review for Possible Downgrade
....Rand 8M Class B17 Notes, Downgraded to Ba1 (sf)/Aa2.za (sf); previously on May 27, 2019
Baa2 (sf)/Aaa.za (sf) Placed Under Review for Possible Downgrade
....Rand 5M Class C10 Notes, Downgraded to Ba2 (sf)/A1.za (sf); previously on May 27, 2019
Baa3 (sf)/Aaa.za (sf) Placed Under Review for Possible Downgrade
....Rand 5M Class C17 Notes, Downgraded to Ba2 (sf)/A1.za (sf); previously on May 27, 2019
Baa3 (sf)/Aaa.za (sf) Placed Under Review for Possible Downgrade
....Rand 5M Class D5 Notes, Downgraded to Ba2 (sf)/A1.za (sf); previously on May 27, 2019
Baa3 (sf)/Aa1.za (sf) Placed Under Review for Possible Downgrade
....Rand 658M Class A27 Notes, Downgraded to Baa3 (sf); previously on May 27, 2019 A3 (sf)
Placed Under Review for Possible Downgrade
....Rand 658M Class A27 Notes, Confirmed at Aaa.za (sf); previously on May 27, 2019 Aaa.za
(sf) Placed Under Review for Possible Downgrade
....Rand 159M Class B20 Notes, Downgraded to Ba1 (sf)/Aa2.za (sf); previously on May 27, 2019
Baa2 (sf)/Aaa.za (sf) Placed Under Review for Possible Downgrade
....Rand 210M Class A28 Notes, Assigned Baa3 (sf)/Aaa.za (sf)
....Rand 24M Class B21 Notes, Assigned Ba1 (sf)/Aa2.za (sf)
The full Moody’s rating report on Nqaba Finance 1 (RF) Limited is available online at:
https://www.moodys.com/research/Moodys-downgrades-Notes-and-assigns-definitive-ratings-to-
two-new--PR_406025.
For further information, please contact:
Eskom Finance Company SOC Ltd
Megawatt Park
Maxwell Drive
Sunninghill
2157
Ettienne Bester
Tel +27 11 800 5405
Email: besteret@eskom.co.za
Johannesburg
08 August 2019
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)
Date: 08/08/2019 10:55:00
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