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Fitch Rates RCS Investment Holdings Ltd's DMTN Programme & Senior Unsecured Notes
February 12, 2015 / 2:37 PM / 3 years ago

Fitch Rates RCS Investment Holdings Ltd's DMTN Programme & Senior Unsecured Notes

(The following statement was released by the rating agency) DUBAI/LONDON, February 12 (Fitch) Fitch Ratings has assigned South African-based RCS Investment Holdings Ltd's (RCS) existing ZAR5bn DMTN programme a National Long-term rating of 'AA-(zaf)' and National Short-term Rating of 'F1+(zaf)' and the senior unsecured notes issued under the programme a National Long-term Rating of 'AA-(zaf)'. A full list of rating actions is available at the end of this rating action commentary. KEY RATING DRIVERS RCS has a National Long-term Rating of 'AA-(zaf)' with a Stable Outlook and a National Short-term Rating of 'F1+(zaf)'. The DMTN Programme and notes are rated in line with RCS's National Ratings, reflecting Fitch's view that non-payment of these senior unsecured obligations would reflect the uncured failure of the entity in accordance with Fitch's rating definitions. RCS's National Ratings reflect a high probability of support available from its ultimate parent BNP Paribas (A+/Stable/a+) and BNP Paribas Personal Finance, if required. RCS's ratings are notched from BNP Paribas to reflect the 100% ownership of RCS by BNP Paribas, which is balanced by the small size of RCS in terms of assets and earnings compared with BNP Paribas, the current early stage of integration with the parent and that RCS is based in a different jurisdiction and market. In addition, the ratings consider the undrawn funding and liquidity facilities in place with the parent. RATING SENSITIVITIES The ratings are linked and therefore sensitive to a change in RCS's National Ratings. These in turn are sensitive to a reduction in the perceived ability or willingness of the parent to provide support to RCS. The former could be triggered by a weakening of BNP Paribas' creditworthiness, which Fitch does not anticipate in view of the Stable Outlook on its ratings. A reduction in the willingness of the parent to provide support to RCS could be signified by public statements or a reduction in shareholding or an indication of an intention to sell. Positive rating action would most likely be driven by an improvement in Fitch's assessment of the creditworthiness of the parent or by evidence of an even higher propensity of the parent to support RCS. This could come through further integration with BNP Paribas and an increase in the strategic importance of RCS to the group. The rating actions are as follows: DMTN programme assigned at 'AA-(zaf)'/'F1+(zaf)' Senior unsecured debt assigned at 'AA-(zaf)' RCS's other ratings are as follows: Long-term foreign currency IDR: 'BBB'; Outlook Stable Local currency long-term IDR: 'BBB'; Outlook Stable Short-term foreign currency IDR: 'F2' Support Rating: '2' National Long-term rating: 'AA-(zaf)'; Outlook Stable National Short-term rating: 'F1+(zaf)' Contact: Primary Analyst Redmond Ramsdale Director +971 4 424 1202 Fitch Ratings Limited Al Thuraya Tower 1, Office 1805 and 1806 Media City, PO Box 502030 Dubai Secondary Analyst Mahin Dissanayake Director +44 20 3530 1618 Committee Chairperson Erwin van Lumich Managing Director +34 93 323 8403 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: elaine.bailey@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 31 January 2014, is available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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