Fitch rates Barloworld bond A+(zaf)

Fitch Ratings said it assigned Barloworld Ltd.'s new senior unsecured bond of up to ZAR 1.5 billion an expected rating of A+(zaf). The bond is to be issued under Barloworld's increased ZAR 10 billion domestic medium-term note program.

The new senior unsecured bond does not represent additional debt to the group, Fitch said, and is expected to comprise three individual note issues with maturities of seven years and two weeks, four years and two weeks and three years, respectively.

The proceeds are expected to be used in partially switching ZAR 500 million of upcoming bond maturities into longer-term debt, the agency said, and the remainder will be applied to the refinancing of short-term banking facilities and commercial paper, improving Barloworld's medium-term debt maturity profile.

The rating is contingent on the receipt of final documents.

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