Safari Investments (RSA) Limited

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Safari Investments RSA Limited (2021-09)
  • Safari Investments (RSA) Limited
  • Year : Sep 2021
3 Tokens
USD 300.00
Summary

The deterioration in the gearings metrics contributes negatively to the ratings assessment. The LTV ratio increased to 41% at FY21 (FY19: 36%), as debt increased to R1.3bn (FY20: R1.1bn) as a result of the final settlement of the financial guarantee linked to the Southern Palace empowerment transaction. Coupled with flat earnings, earnings-based gearing increased to 6.3x (FY20: 5.1x) while interest cover narrowed to 2.3x (FY20: 2.5x). However, Safari has indicated that it expects an improvement in gearing metrics as plans to decrease debt are underway, provided no acquisition opportunities arise over the rating horizon.

Additional Information

The Stable Outlook reflects GCR’s expectations that, notwithstanding the heightened uncertainty against the backdrop of the COVID-19 crisis, Safari’s financial profile will remain relatively stable due to its defensive retail portfolio and proactive treasury management, albeit that debt reduction initiatives may take longer to materialise.

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