Standard & Poor’s affirms South African Transport Firm Super Group ‘zaA+/zaA-1’ National Scale Ratings

Super Group, a leading transport logistics and mobility group, is pleased to report, that in an unscheduled review, Standard & Poor’s (“S&P”) reaffirmed Super Group’s ‘zaA +’ long-term rating and maintained its ‘zaA – 1’ short-term rating on the Group.

The unscheduled review follows the downgrade of South Africa’s Sovereign Rating on 3 April 2017 by S&P.

“We are comfortable with the ratings and rationale applied by S&P”; stated Peter Mountford, Group CEO. He went on to indicate that in the S&P report, the rating agency reaffirmed that Super Group has “sufficient liquidity to cover its future commitments” and that it has “diversified its cash flow generation to low risk countries such as Australia, the UK and Germany.”

The rating agency’s rationale for affirming Super Group ratings is due to a solid balance sheet and a track record of generating free cash flow, part of which is generated in countries perceived by S&P to be lower risk. The agency does however warn that a portion of Super Group’s cash is still sourced in the local market and this has the potential to be at risk, should the country suffer because of the Sovereign ratings downgrade.

In conclusion Mountford indicated that: “We endorse the S&P rationale in terms of our business model and although we have no illusions that the operating environment will be challenging going forward, Super Group’s international diversification should be a strong buffer against local economic headwinds. We further remain committed to sensible cash management and capital allocation.”