Fitch Ratings-London-12 September 2016: Fitch Ratings has revised the Outlooks on the Long-Term Issuer Default Ratings (IDR) and National Long-Term Ratings of four Namibian corporates to Negative from Stable. A full list of rating actions is below.<\/p>\n
KEY RATING DRIVERS
\nThe rating actions follow the revision of the Outlook on Namibia’s Long-Term IDRs and National Long-Term ratings to Negative from Stable (see ‘Fitch Revises Namibia’s Outlook to Negative; Affirms at ‘BBB-‘; dated 02 September 2016 at www.fitchratings.com). Fitch’s assessment of fundamental issuer-specific credit considerations remains unchanged.<\/p>\n
Namibian Ports Authority and Namibia Power Corporation’s ratings remain aligned to those of the Namibian sovereign, based on Fitch’s assessment of its legal, operational and strategic ties with the state as strong in accordance with the agency’s ‘Parent and Subsidiary Rating Linkage’ criteria.<\/p>\n
Namibia Water Corporation’s (NamWater) linkage with the Namibian remains strong in accordance with the agency’s ‘Parent and Subsidiary Rating Linkage’ criteria. However, the lack of strong legal links means that we would view the links as supporting the utility’s rating at one notch below the sovereign rating. As such, NamWater’s standalone profile drives the ratings. The Outlook on NamWater’s ratings is now constrained by the Outlook on Namibia’s ratings.<\/p>\n
Fitch applies its parent subsidiary linkage criteria to Telecom Namibia’s ratings, which are notched down two levels from Namibia’s Long-Term Local Currency IDR of ‘BBB-‘.<\/p>\n
For each issuer’s Key Rating Drivers, Rating Sensitivities and Key Assumptions see the recent rating action commentaries (RACs), referenced below.<\/p>\n
The rating actions are as follows:
\nNamibian Ports Authority
\nNational Long-Term rating affirmed at ‘AA+(zaf)’; Outlook revised to Negative from Stable
\nNational Short-Term rating affirmed at ‘F1+(zaf)’<\/p>\n
See ‘Fitch Upgrades NamPort to ‘AA-(zaf); Outlook Stable’, dated 22 June 2015 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities.<\/p>\n
Namibia Power Corporation (Proprietary) Limited
\nLong-Term Foreign Currency IDR affirmed at ‘BBB-‘; Outlook revised to Negative from Stable
\nShort-Term Foreign Currency IDR: affirmed at ‘F3’
\nNational Long-Term rating affirmed at ‘AA+(zaf)’; Outlook revised to Negative from Stable
\nNational Short-Term rating affirmed at ‘F1+(zaf)’<\/p>\n
See ‘Fitch Affirms NamPower at ‘BBB-‘; Outlook Stable’, dated 14 June 2016 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities.<\/p>\n
Namibia Water Corporation
\nLong-Term Foreign Currency IDR affirmed at ‘BBB-‘; Outlook revised to Negative from Stable
\nShort-Term Foreign Currency IDR: affirmed at ‘F3’
\nLong-Term Local Currency IDR: affirmed at ‘BBB-‘; Outlook revised to Negative from Stable
\nShort-Term Local Currency IDR: affirmed at ‘F3’
\nNational Long-Term rating affirmed at ‘AA+(zaf)’; Outlook revised to Negative from Stable
\nNational Short-Term rating affirmed at ‘F1+(zaf)’
\nLong-Term senior unsecured rating affirmed at ‘BBB-‘
\nNational senior unsecured rating affirmed at ‘AA+(zaf)’<\/p>\n
See ‘Fitch Rates NamWater’s NAD200m Senior Unsecured Bonds at ‘BBB”, dated 12 May 2015 at www.fitchratings.com for full rating rationale and disclosures.<\/p>\n
Telecom Namibia Limited
\nLong-Term Local Currency IDR: affirmed at ‘BB’; Outlook revised to Negative from Stable
\nNational Long-Term rating affirmed at ‘A-(zaf)’; Outlook revised to Negative from Stable<\/p>\n
See ‘Fitch Affirms Telecom Namibia at ‘BB+’; Outlook Stable’, dated 25 September 2015 at www.fitchratings.com for full rating rationale and disclosures.<\/p>\n
KEY ASSUMPTIONS
\nSee the relevant RAC for each issuer referenced above.<\/p>\n
RATING SENSITIVITIES
\nSee the relevant RAC for each issuer referenced above.<\/p>\n
RATING SENSITIVITIES FOR THE NAMIBIAN SOVEREIGN
\nFuture developments that could result in a downgrade include:
\n– A failure to narrow the fiscal deficit leading to continued rise in the government debt\/GDP ratio.
\n– Failure to narrow the current account deficit or significant drawdown in international reserves.
\n– Deterioration in economic growth, for example, due to a worsening of the business environment.<\/p>\n
Future developments that could result in the Outlook being revised to Stable include:
\n– A narrowing of the budget deficit consistent with a stabilisation of the government debt\/GDP ratio.
\n-A marked improvement in the current account balance and increase in foreign exchange reserves.<\/p>\n
Contact:
\nPrincipal Analyst
\nRichard Barrow (Namibia Power Corporation, Namibia Water Corporation, Telecom Namibia Limited)
\nDirector
\n+44 20 3530 1256<\/p>\n
Principal Analyst
\nYeshvir Singh (Namibian Ports Authority)
\nAssociate Director
\n+44 20 3530 1810<\/p>\n
Supervisory Analyst
\nYeshvir Singh (Namibia Power Corporation, Namibia Water Corporation, Telecom Namibia Limited)
\nAssociate Director
\n+44 20 3530 1810
\nFitch Ratings Limited
\n30 North Colonnade
\nLondon E14 5GN<\/p>\n
Supervisory Analyst
\nShyamali Rajivan (Namibian Ports Authority)
\nDirector
\n+44 20 3530 1733
\nFitch Ratings Limited
\n30 North Colonnade
\nLondon E14 5GN<\/p>\n
Committee Chairperson
\nJosef Pospisil, CFA
\nManaging Director
\n+44 20 3530 1287<\/p>\n
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com.<\/p>\n
Additional information is available on www.fitchratings.com. For regulatory purposes in various jurisdictions, the supervisory analyst named above is deemed to be the primary analyst for this issuer; the principal analyst is deemed to be the secondary.<\/p>\n","protected":false},"excerpt":{"rendered":"
The below press release is from the Fitch Ratings website: Fitch Ratings-London-12 September 2016: Fitch Ratings has revised the Outlooks on the Long-Term Issuer Default Ratings (IDR) and National Long-Term Ratings of four Namibian corporates to Negative from Stable. A full list of rating actions is below. KEY RATING DRIVERS \u2026 Continue reading