PSG KONSULT LIMITED - PSG Konsult Credit Rating And Outlook Unchanged

Release Date: 23/07/2018 16:32
Code(s): KST KST01
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PSG Konsult Credit Rating And Outlook Unchanged

(Incorporated in the Republic of South Africa)
Registration Number: 1993/003941/06
JSE Share Code: KST
NSX Share Code: KFS
ISIN Code: ZAE000191417
(“PSG Konsult” or “the Company”)

Incorporated in the Republic of South Africa
(Registration No. 2014/196582/06)
Company Code: BICAP
Stock Code: KST01
ISIN Code: ZAG000145285


Shareholders are advised that the rating agency Global Credit Rating Company (“GCR”) has
affirmed the national scale Issuer ratings assigned to PSG Konsult of A-(ZA) and A1-(ZA) in
the long term and short term respectively, with the outlook for both ratings remaining stable.

GCR states, “PSG Konsult’s ratings reflect its established franchise in wealth management,
complemented by its small but growing asset management and insurance divisions. The
synergistic nature of the divisions creates a solid platform for cross-selling opportunities,
leveraging off its large and growing advisor distribution network that has allowed for good
customer loyalty to be maintained over the years.

PSG Konsult’s financial risk profile benefits from limited capital needs, despite insurance
risk, and minimal debt on its standalone balance sheet. GCR takes into consideration
adjusted gearing (includes guarantees), with debt to operating income reported at a very
conservative 12%. PSG Konsult’s net interest coverage ratio is in excess of 30x, whilst
discretionary cash flow cover of adjusted debt was also strong at well over 100%. The group
is highly cash generative, which has afforded meaningful financial flexibility to pursue several
acquisitions with internal resources. This combined with entrance into the debt capital
markets further enhance the liquidity buffer.”

Tyger Valley
23 July 2018

PSG Capital

NSX sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the
Namibian Stock Exchange

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