Trustco : Global Credit Rating 2021

Rating Triggers

Should Trustco successfully conclude the planned corporate transactions, the rating could be upgraded as this could have an immediate positive impact on balance sheet strength through stronger liquidity and potentially lower debt. Furthermore, should revenue expectations from the resources business be realised in the 2022 financial year, this could also lead to further upward rating migration given the nature of the mining business and potential to transform earnings.

Conversely, should the aforementioned transformational transaction not be concluded, or if earnings, cash flow and liquidity don't improve materially in the short-term, we could lower the ratings, as we may see the debt profile as unsustainable in the medium-term.

Analytical Contacts

Related Criteria and Research

Criteria for the GCR Ratings Framework, May 2019

Criteria for Rating Financial Services Companies, May 2019

Criteria for Rating Corporate Entities, May 2019

GCR Rating Scales, Symbols & Definitions, May 2019

GCR Country Risk Scores, October 2021

GCR Financial Institutions Sector Risk Scores, September 2021

Ratings History

Risk Score Summary

Risk score summary not applicable at current rating levels.

Namibia Financial Institutions | Public Credit Rating

Glossary

Namibia Financial Institutions | Public Credit Rating

Salient Points of Accorded Ratings

GCR affirms that a.) no part of the ratings were influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument.

The credit ratings have been disclosed to Trustco Group Holdings Limited. The ratings above were solicited by, or on behalf of, the rated entity, and therefore, GCR has been compensated for the provision of the ratings.

Trustco Group Holdings Limited participated in the rating process via management meetings and other written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible. The information used to analyse and accord the credit ratings included:

• Audited financial results as at 30 September 2020 (and four years of comparative numbers);
• Budgets for 2021 and 2022; and
• Other relevant information;

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Namibia Financial Institutions | Public Credit Rating