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Moody's assigns Edcon's provisional rating‚ outlook stable

11 Nov 2013

Moody's Investors Service has assigned a provisional (P)Caa2 rating to the proposed issuance of €400m senior notes‚ due in 2019‚ by retailer Edcon Holdings.

Moody's assigns Edcon's provisional rating‚ outlook stable

Concurrently‚ Moody's has affirmed Edcon's corporate family rating (CFR) at B3‚ its probability of default rating (PDR) at B3-PD and various instrument ratings assigned to Edcon Holdings Limited and Edcon Limited.

The ratings agency said on Friday that the proposed senior notes would be guaranteed on a subordinated basis by Edcon Limited‚ Edcon Acquisition (Pty) Ltd and Edgars Consolidated Stores Limited. The outlook on the ratings is stable.

"We have assigned a (P)Caa2 rating decision to Edcon's proposed senior notes in line with the current ratings assigned to the €378m senior notes due 2015‚ on the understanding that the new senior notes will be used to refinance the existing €378m senior notes‚" said Dion Bate‚ a Moody's Vice President - Senior Analyst and local market analyst for Edcon.

The proposed €400m issuance senior notes due in 2019 will improve the company's liquidity profile by further lengthening its maturity profile‚ added Bate.

Source: I-Net Bridge

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