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Financial|Platinum
Financial|Platinum
financial|platinum

Northam receives ratings upgrade from GCR, extends loan maturities

31st October 2022

By: Marleny Arnoldi

Deputy Editor Online

     

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Credit ratings agency Global Credit Rating (GCR) Company has upgraded JSE-listed Northam Platinum’s national scale long-term credit rating to A+ from A, and reaffirmed its short-term credit rating at A1, with a stable outlook.

GCR attributes the upgraded rating to its enhanced liquidity position and significant financial flexibility, as well as the expectation that the group will continue delivering strong operational performances in various price scenarios.

The agency states that Northam continues to sustain high profitability levels, which stem from ongoing ramp-ups in production and high-quality, competitive cost assets.

Meanwhile, Northam has announced that it has concluded agreements for its five-year R4-billion revolving credit facility, maturing in September 2024, to be refinanced and increased on more favourable terms.

The new five-year R5.7-billion facility will mature in August 2027.

Additionally, the company has settled a R3-billion bridge facility, which would have matured in December, as well as secured a new five-year term loan facility of R2.4-billion, which also matures in August 2027.

The facilities, together with Northam’s existing R1-billion general banking facilities, puts the company’s available banking facilities at R9.15-billion.

 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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