In January 2020, previously excluded bad debts recovered relating to actual write-offs was included as part of monthly recoveries. The "Aggregate Net Defaults for last 12 Months" trigger marginally improved as a result, with the December 2019 trigger decreasing to 2.63% compared to the reported 2.68%. The trigger remains close to the 2.7% covenant, however at 2.69% for February 2020. GCR estimates that all things equal or taking 12-months averages, minimum defaults of R40,000 may increase the trigger to 2.7%. For the year 2019, the reported minimum and maximum monthly defaults where R137,997 and R4,421,089 respectively suggesting that unless significant recoveries are reported for March 2020, the trigger will be above 2.7%. MRF has indicated that they are closely monitoring the trigger.
The Dashboard covers the period from February 2019 to February 2020 and is part of GCR’s performance monitoring process and does not constitute rating action or rating report. GCR will update the Dashboards at least on a quarterly basis.
The Dashboard exhibits performance metrics related to the Compass Securitisation (RF) Ltd transaction, which include credit enhancement levels, excess spread, defaults, recoveries and covenants. Rating reports can be accessed here.