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 March 2020. GCR estimates that all things equal or taking 12-months averages, minimum defaults of R1.1m may increase the trigger to 2.7%. For the past 12 months, the reported minimum and maximum monthly defaults where R339,810 and R4,421,089 respectively. In March 2020, recoveries of R2.1m where reported, reflecting MRF's aggressive collections strategy implemented in 2020.
The Dashboard covers the period from March 2019 to March 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.