Moody’s assigns Baa3 rating to Steinhoff

Moody’s Investors Service said it assigned a Baa3 long-term issuer rating to Steinhoff International Holdings NV, along with an A3.za national scale issuer rating to Steinhoff Investment Holdings Ltd.

The agency also said it withdrew Steinhoff International Holdings Ltd.’s Baa3 long-term issuer rating and A3.za national scale rating following the implementation of a scheme of arrangement whereby Steinhoff International Holdings NV will subsume Steinhoff International Holdings Ltd. in the organizational structure.

Moody’s said it views the credit risk of Steinhoff International Holdings NV to be similar to the previously rated entity, Steinhoff International Holdings Ltd., so it assigned the same Baa3 rating.

The outlook is stable.

The rating assigned reflects the company’s large scale, broad business and geographic diversification, strong liquidity profile, financial policies that support de-leveraging and an ability to further optimize its vertically integrated supply chain, Moody’s said.

The rating also considers Steinhoff’s position in the mass discount market in an uncertain economic environment, the agency said.

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