South African transport company Super Group said on Monday that it was "surprised" by rating agency Fitch's unexpected reassessment of its rating watch to negative within such a short period of time given no change in circumstances since the previous rating revision on 3 December 2007.
?The board of directors is of the opinion that the process had been satisfactorily concluded and has not received adequate reason or cause for the new reassessment,? the company said on Monday.
The board of directors concluded that is confident that adequate measures are in place to facilitate the refinancing of the corporate bond during the first quarter of 2008 and does not expect to utilise the committed facility lines to refinance the bond.
On 3 December 2007, Fitch had affirmed Super Group's credit rating at A- and revised its outlook from negative to stable. At the time Fitch noted that it was satisfied with evidence of adequate measures being put in place by Super Group regarding the refinancing of its R900-million bond, payable in June 2008.
Subsequently, on 28 December, it placed Super Group National Long-term 'A-(zaf)' and Short-term `F2(zaf)' ratings on Rating Watch Negative.