Rating agency Global Credit Rating Company ("GCR") has reviewed the ratings of PSG Konsult under the recently released Appendix Criteria for Rating Asset Managers, November 2019.
PSG Konsult’s long-term South African national scale rating has been upgraded to A(ZA) from A-(ZA), while PSG Konsult’s short-term South African national scale rating has been revised to A1(ZA), from A1-(ZA), due to a change in the long- to short-term mapping tables. The outlook is stable.
GCR’s rating rationale
states, “The South African National Scale ratings on PSG Konsult are anchored
in its operating environment (as a predominantly South Africa based financial
services group), it also reflects a modest competitive position, net ungeared
balance sheet, good cash flows, moderate earnings and good liquidity.
leverage and cash flow assessment is a strong positive rating factor for PSG
Konsult, due to its net ungeared position. The entity has conservatively
managed capital and debt over its rating history, and we believe this trend
will continue going forward.
is considered to be strong. PSG Konsult demonstrates consistent sources of
liquidity which cover more than 2x its anticipated uses, due to the good cash
flow, strong balance sheet liquidity and limited liability risk. There is also
no refinancing or covenant risk.”
To read the full announcement from GCR, click here.