Fitch Assigns Sappi Manufacturing's SMF3 Bond issue 'A+(zaf)' Rating
Fitch Ratings-London/Johannesburg-09 July 2009: Fitch Ratings has today assigned South Africa-based Sappi Manufacturing (Pty) Ltd's (Sappi Man.) new ZAR325m bond issue (SMF3) an 'A+(zaf)' rating.
The structure for the new bond is similar to that of the two existing bonds (SMF1 and SMF2) issued by Sappi Man, which are also rated 'A+(zaf)'. All three bonds have been issued under Sappi Man's ZAR5bn Domestic Medium Term Note (DMTN) programme which sets out the terms and conditions.
The three-year SMF3 bond was issued on a senior unsecured basis with a fixed rate of interest of 12.13% payable semi-annually in arrears. The bond has an effective maturity of 30 June 2012 and is subject to standard cross-default and change of control clauses. Sappi Man. plans to use the proceeds from the issue for general corporate purposes.
Sappi Man. is a South African-based producer of chemical cellulose, kraft paper, newsprint and fine paper. It is the world's leading producer of chemical cellulose, and sources timber from its own extensive plantations. Sappi Man. is a wholly-owned subsidiary of Sappi Ltd.
Contacts: Roelof Steenekamp, Johannesburg, Tel: +27 11 380 0900; Karabo Matentji: +27 11 380 0910.
Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email: peter.fitzpatrick@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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