Steinhoff SA (Pepkor) receives strong rating

All,

Good news to 21a and 22s from a valuation perspective, but cash dividend still unlikely.

Steinhoff’s SA subsidiary Pepkor Holdings Ltd. received an A3 rating from Moody’s, reflecting its “moderate leverage" and business “resilience”.

Steinhoff are planning to use the rating as backdrop to issuing lower coupon bonds and thus lower cost of funding. However, the aim in the SA entity appress to remain to reduce leverage to below 1x, so chances of a div-deal sending funds to Austria/Luxembourg remain remote.

Wolfgang