Fitch affirms Steinhoff

Fitch Ratings said it affirmed Steinhoff International Holdings Ltd.'s national long-term rating at A(zaf) and its national short-term rating at F1(zaf).

The outlook remains stable.

The agency said the affirmation is supported by Steinhoff's improved earnings and gearing ratios in fiscal 2007 and the company's indication that significant corporate activities over the last 12 months have been finalized. The diversified nature of its products and the geographical spread of its operations has protected the group from less-than-optimal markets, Fitch said, and its vertical integration model and strategic procurement relationships with selected suppliers as well as preferred supplier status with customers and buying groups in its European operations remain key strengths.

Fitch remains concerned about the successful integration of Steinhoff's Homestyle operations in the United Kingdom due to increased interest rates and competition and subdued consumer spend.

The adjusted net debt-to-EBITDAR ratio was 3.4 times at the end of fiscal 2007.

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