Global Credit Ratings Downgrades Transaction Capital Limited Amid Corporate Restructuring

  • Transaction Capital Limited's credit ratings downgraded by Global Credit Ratings due to ongoing corporate restructuring.
  • Downgrades affect both long and short-term South African national scale ratings, with all ratings placed on Rating Watch Negative.
  • Company emphasizes transparency, plans to provide full ratings report on its website for shareholders and noteholders.

In a significant development, Global Credit Ratings (GCR) has downgraded the credit ratings of Transaction Capital Limited, a prominent player in the financial services sector, citing ongoing corporate restructuring as the primary reason. The downgrade affects both the long and short-term South African national scale issuer credit ratings, while the long-term international scale rating remains affirmed.

Rating Downgrade Details

Long-term South African ScaleA(ZA)A-(ZA)Downgrade
Short-term South African ScaleA1(ZA)A2(ZA)Downgrade
Long-term International ScaleB+B+Affirmed

All ratings have been placed on Rating Watch Negative, indicating the potential for further downgrades or revisions in the future.

Impact of Corporate Restructuring

The downgrade comes in the wake of ongoing corporate restructuring within Transaction Capital Limited. While specific details regarding the restructuring were not disclosed in the announcement, it suggests a period of change and adjustment within the company, potentially impacting its financial stability and operational effectiveness.

Investor and Shareholder Response

The announcement of the credit rating downgrade may cause concern among investors and shareholders of Transaction Capital Limited. Credit ratings play a crucial role in assessing the creditworthiness and financial health of a company, influencing investor confidence and the cost of borrowing. The Rating Watch Negative further adds to the uncertainty surrounding the company’s future performance.

Company Response and Further Information

Transaction Capital Limited, emphasized the company’s commitment to transparency and disclosure by announcing that a full ratings report would be made available on the company’s website. Shareholders and noteholders are encouraged to refer to the website for more detailed information regarding the rating downgrade and its implications.



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