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


TUHF hereby advises that on 18 December 2020, GCR Ratings (“GCR”) downgraded the Issuer’s
national scale long-term Issuer rating to BBB-(ZA) from BBB(ZA) and affirmed the South African short term
Issuer rating of A3(ZA). The Rating Outlook has been maintained as Negative.

GCR’s credit rating announcement (“Rating Announcement”) is publicly available on its website at:
https://gcrratings.com/announcements/gcr-downgrades-tuhf-limiteds-national-scale-long-term-issuer-
rating-to-bbb-za-rating-watch-negative-maintained/

Prior to the Rating Announcement, the Issuer experienced a decline in cash collections on its loan book
following the hard lockdown required due to the impact of Covid-19 and resulting in a sharp economic
contraction. This impact affected cashflows for a period of six months however, during the last quarter of
2020 and to date, there has been a significant recovery of the cashflows from collections.

TUHF has also implemented a recovery plan to stabilise, and over time uplift the credit rating. A key
component of this strategy has been the overall improvement of TUHF’s liquidity position supported by
the successful issuance of R609 million of securitised notes through Urban Ubomi 1 (RF) Limited (“Urban
Ubomi Issuance”), the group’s second successful securitisation structure which went to market in March
2021. As disclosed in the R2,500,000,000 Mortgage Backed Securities Programme, which was registered
with the JSE Limited on 12 March 2021 (and using the terms defined therein unless otherwise stated),
TUHF as the Originator of the assets in the group sells qualifying assets directly to Urban Ubomi or to
Vuselela Warehouse SPV RF Proprietary Limited (“Vuselela Warehouse"). Vuselela Warehouse then
sells loan assets to the securitisation structure. Consequently, TUHF has been positively impacted
directly by the Urban Ubomi Issuance and this, in turn, has positively impacted the group’s liquidity.


Johannesburg
7 May 2021


Debt Sponsor
Merchantec Capital

Date: 07-05-2021 08:45:00
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