Fitch: Super Group on evolving watch

Fitch Ratings said it revised the Rating Watch on Super Group Ltd.'s national long-term BB(zaf) rating to Rating Watch evolving from Rating Watch negative. The national short-term B(zaf) rating remains on Rating Watch negative.

The actions follow the company's announcement of discussions with their bankers and shareholders for a ZAR 1 billion fully underwritten rights offer and debt restructuring, expected by fiscal year-end 2009. If successful, this would result in a material reduction in short-term and total debt levels, help Super Group's liquidity position and improve net leverage, according to the agency.

The change incorporates expectation that a successful completion of the proposed rights issue and debt restructuring will contribute toward a strengthening of Super Group's credit profile and may have a positive impact on Super Group's long-term rating, although a stabilization of the ratings currently looks probable, the agency said.

In the event Super Group is unable to complete the proposed funding arrangements, the group would still face material refinance risks, Fitch said.

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