Moody's cuts Kagiso Tiso

Moody's Investors Service said it downgraded Kagiso Tiso Holdings Pty. Ltd.'s corporate family rating to B2 from Ba3 and the national scale rating CFR to Ba1.za from Baa1.za. The ratings have been placed on review for further downgrade.

The downgrade reflects the assessment of weak liquidity with little headroom for any delays in cash inflows to pay the approaching ZAR 800 million bond that is due on Aug. 6, Moody’s said.

“Moody's understand that KTH has cash balances of around ZAR 575 million as of March 2020 (ZAR 382 million as of the latest audited financial statements ending 30 June 2019) and that the repayment of the bond is reliant on the timely release of around ZAR 200 million of restricted cash, potential receipt of an excess cash dividend from Kagiso Media Pty. Ltd. (Kagiso Media) and proceeds from other non-core asset disposals,” said the agency in a press release.

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