Moody's on Aug. 10 assigned Industrial Development Corp. of South Africa Ltd. a first-time long-term national scale issuer rating of Aa1.za.
The agency said the rating is mapped directly from the company's Baa3 long-term global scale issuer rating, reflecting its strong relative creditworthiness among debt issuers in South Africa. Moody's added that IDC's ratings also capture its stand-alone credit profile of "ba2," reflecting its strong capital buffers, but also its high asset risks.
Moody's noted that IDC has shown adequate liquidity buffers and a stable funding profile, but remains dependent on market funding, making it vulnerable to potential increased risk aversion by institutional investors.
The agency said the company's ratings incorporate its view of a high probability of government support in case of need, due to its full government ownership and the developmental and policy role it plays in the market.
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