Fitch Affirms iNkotha Investments Limited at 'F1(zaf)'
Fitch Ratings-London/Johannesburg-13 August 2009: Fitch Ratings has today affirmed iNkotha Investments Limited's (iNkotha) National Short-term rating at 'F1(zaf)'.
The rating affirmation follows Fitch's satisfactory review of iNkotha's sponsor, Rand Merchant Bank (RMB), a division of FirstRand Bank Limited ('AA(zaf)'/'F1+(zaf)'/Outlook Negative), which is based in Sandton, South Africa. The review consisted of on-site discussions with RMB's management as well as an operational review covering commercial paper issuance, IT administration systems, administrative procedures, credit policies and portfolio composition.
iNkotha is a South African bond fund programme structured to issue up to ZAR10bn of notes. The issuer advances overnight call loans to eligible rated obligors. These loans are funded by the issuance of five-year and one-day notes. The notes can be called at any time by the issuer from the noteholder or put at any time by the noteholder to the issuer.
As of the end of July 2009, iNkotha had ZAR4,564m of CP outstanding.
A copy of the rating report is available on the agency's subscriber website, www.fitchresearch.com.
Contacts: Rabia Parker, Johannesburg, +27 11 380 0906, Emma-Jane Fulcher, London, Tel: +44 (0) 20 7417 3529.
Media Relations: Julian Dennison, London, Tel: +44 020 7682 7480, Email: julian.dennison@fitchratings.com.
Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(zaf)' for National ratings in South Africa. Specific letter grades are not therefore internationally comparable.
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