PPC's credit rating upgraded
On 29 June 2018 S&P Global Ratings (S&P) upgraded its long-term South Africa national scale rating on PPC to 'zaA-' from 'zaBBB'.
The investment grade rating reflects S&P’s view that PPC’s underlying credit metrics are broadly stable. In particular, S&P regard PPC as having adequate liquidity and, as a result of the deleveraged balance sheet, sufficient covenant headroom of greater than 15% based on their base case for 2019.
Furthermore, PPC’s short-term South Africa national scale rating was affirmed at 'A-2' and S&P removed the "under criteria observation" (UCO) designation from these national scale ratings.
The ratings upgrade demonstrates the impact of the financial disciplines and strategic measures PPC has introduced to improve the group’s liquidity and reduce leverage as outlined in the group’s FOH-FOUR strategic priorities.