Emira’s bond rating gets affirmation by GCR for its stable outlook

CAPE TOWN – Global Credit Ratings (GCR) affirmed Emira Property Fund’s bond credit ratings of A (ZA) and A1(ZA), respectively, with a stable outlook, because the firm was expected to withstand short-lived Covid-19 related disruptions, a statement said yesterday.

Ratings were affirmed due to the “sound performance of Emira’s small but relatively diverse portfolio, which continues to underpin the ratings, despite heightened funding and asset risk faced by the South African property sector.”

GCR also affirmed the long-term issue rating of AA+(ZA)(EL) assigned to Emira’s senior secured notes, with a stable outlook.

The stable outlook was a result of GCR’s expectations that Emira would sustain sound through-the-cycle earnings from its rebalanced portfolio which, coupled with initiatives to conserve cash and sustain liquidity, should enable Emira to withstand the short-lived Covid-19 related disruptions, the rating agency said.

The rebalanced Emira portfolio is weighted towards retail (48percent versus 41percent at December 2018), although the Reit also has moderate exposures to office, industrial and a small residential investment.

Source: iol.co.za