Northam Receives Ratings Upgrade from GCR and Extends Loan Maturities

Credit rating agency Global Credit Rating (GCR) Company has upgraded JSE-listed Northam Platinum’s long-term credit rating from A+ to A+, and reaffirmed its short-term credit rating at A1, with a stable outlook.

GCR attributes the improved rating to its improved liquidity position and significant financial flexibility, as well as the expectation that the group will continue to deliver strong operating performance under various price scenarios.

The agency says Northam continues to maintain high levels of profitability, which stem from the continued ramp-up of production and high-quality, cost-competitive assets.

Meanwhile, Northam announced that it has reached agreements for its five-year, R4 billion revolving credit facility, maturing in September 2024, to be refinanced and increased on more favorable terms.

The new five-year R5.7 billion facility will mature in August 2027.

In addition, the company has put in place a R3 billion bridge facility, which would have matured in December, as well as a new five-year term loan facility of R2.4 billion, which is also due. maturing in August 2027.

The facilities, together with Northam’s existing R1 billion general bank facilities, place the company’s available bank facilities at R9.15 billion.

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