PSG KONSULT LIMITED - PSG Konsult Credit Rating And Outlook Unchanged

KST KST01 201807230039A<BR>
PSG Konsult Credit Rating And Outlook Unchanged<BR>
<BR>
PSG KONSULT LIMITED<BR>
(Incorporated in the Republic of South Africa)<BR>
Registration Number: 1993/003941/06<BR>
JSE Share Code: KST<BR>
NSX Share Code: KFS<BR>
ISIN Code: ZAE000191417<BR>
(“PSG Konsult” or “the Company”)<BR>
<BR>
PSG KONSULT TREASURY LIMITED<BR>
Incorporated in the Republic of South Africa<BR>
(Registration No. 2014/196582/06)<BR>
Company Code: BICAP<BR>
Stock Code: KST01<BR>
ISIN Code: ZAG000145285<BR>
<BR>
PSG KONSULT CREDIT RATING AND OUTLOOK UNCHANGED<BR>
<BR>
Shareholders are advised that the rating agency Global Credit Rating Company (“GCR”) has<BR>
affirmed the national scale Issuer ratings assigned to PSG Konsult of A-(ZA) and A1-(ZA) in<BR>
the long term and short term respectively, with the outlook for both ratings remaining stable.<BR>
<BR>
GCR states, “PSG Konsult's ratings reflect its established franchise in wealth management,<BR>
complemented by its small but growing asset management and insurance divisions. The<BR>
synergistic nature of the divisions creates a solid platform for cross-selling opportunities,<BR>
leveraging off its large and growing advisor distribution network that has allowed for good<BR>
customer loyalty to be maintained over the years.<BR>
<BR>
PSG Konsult's financial risk profile benefits from limited capital needs, despite insurance<BR>
risk, and minimal debt on its standalone balance sheet. GCR takes into consideration<BR>
adjusted gearing (includes guarantees), with debt to operating income reported at a very<BR>
conservative 12%. PSG Konsult's net interest coverage ratio is in excess of 30x, whilst<BR>
discretionary cash flow cover of adjusted debt was also strong at well over 100%. The group<BR>
is highly cash generative, which has afforded meaningful financial flexibility to pursue several<BR>
acquisitions with internal resources. This combined with entrance into the debt capital<BR>
markets further enhance the liquidity buffer.”<BR>
<BR>
Tyger Valley<BR>
23 July 2018<BR>
<BR>
Sponsor<BR>
PSG Capital<BR>
<BR>
NSX sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the<BR>
Namibian Stock Exchange<BR>
<BR>
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