The rating agency Global Credit Rating Company (“GCR”) upgraded PSG Konsult’s long-term rating to BBB+ (previously BBB) today, 28 August 2014. It also confirmed PSG Konsult’s short-term rating of A2 with the outlook accorded as Stable. This is as a result of PSG Konsult’s strong operational performance over the past two years, as well as the enhanced access to capital and other funding offered by the JSE listing. This is the highest credit rating PSG Konsult has received to date.
PSG management’s comment
Commenting on GCR’s upgrade and recognition of PSG Konsult’s achievements, Mike Smith, PSG Konsult’s Chief Financial Officer, said, “The rating upgrade reflects the increased financial strength and stability we have built into our business model. This is subsequent to the successful restructure we undertook in the 2013 financial year. We are confident of further upgrades as management demonstrates its ability to unlock sustained long-term growth in income and operating profit regardless of market cycles.”
GCR’S rating rationale
GCR states, “The JSE listing is considered positively in terms of raising PSG Konsult’s profile and improving access to capital. Combined with the low debt profile, this provides substantial funding flexibility to undertake acquisitions or similar transactions should the opportunities arise.”
GCR’S full report
The full report is available on PSG Konsult’s website: www.psg.co.za