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Liquidity coverage remains adequate, underpinned by available facilities of R340m, minimal short term debt maturities and limited capex plans. As a result, the uses-vs-sources coverage was unchanged at 1.2x. The REIT is currently in negotiations to extend the term on upcoming maturities, which would further improve its debt maturity profile.
The Stable Outlook reflects GCR’s view that Dipula should continue to display earnings resilience and that credit protection metrics will be consistent with expectations for the rating level. Negative rating movement could arise if there is a sustained increase in the LTV ratio above 40%, which results in concerns about Dipula’s covenant compliance cushion; and/or if liquidity coverage deteriorates below 1.0x.