Omnia Credit Rating upgrade
- Published: Thursday, 23 August 2012 10:00
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
JSE code: OMN
(“Omnia” or “the Group”)
OMNIA CREDIT RATING UPGRADED BY GLOBAL CREDIT RATING CO.
As a result of Omnia’s improved financial profile and its continued solid business performance, the rating agency Global Credit Rating Co. (“GCR”) today upgraded Omnia’s long term rating to A- (from BBB+) and short-term rating to A1- (from A2) with a rating outlook of stable. This is the highest credit rating Omnia has received to date.
Commenting on GCR’s upgrade and recognition of Omnia’s achievements, Rod Humphris, Omnia’s Managing Director, said:
“We are very pleased with the ratings assigned to the Group by GCR. They are a validation of the strength of our existing business strategy and our leading position within the chemical services sector. This upgrade reflects the diversification, integration and financial stability we have built into our business model. I am especially pleased that GCR recognises the benefits of the new nitric acid complex which heralds a significant and much needed investment in the future of South Africa’s agricultural and mining sector, enabling us to add greater value to our customers, while benefitting from supply chain efficiencies”.
The GCR report states that the completion of the new nitric acid complex should bolster margins by 2% to 3%. The rating report also reflects the following views:
· Omnia’s entrenched position as the leading domestic producer of fertilizer and mining explosives has been enhanced by the recently completed nitric acid plant
· Since FY2010, the Group has reported sustainable top line growth, driven by strong demand from the agricultural and mining sectors, combined with the introduction of new products to service these sectors. This has also translated into growth in operating profits
· Omnia’s extended product range will likely add some stability to earnings, as many of the products are not dependent on ammonia and thus unaffected by price volatility.
· Although gross debt increased at FYE2012, gearing ratios remain moderate and net interest coverage rose to a review period high. Moreover, with little capex required going forward, the Group expects strong cash retention in F13, resulting in a considerable reduction in gearing.
23 August 2012
For more information contact Omnia Group: 011 709 8850
Rod Humphris, Managing Director
Noel Fitz-Gibbon, Finance Director
Issued by Brunswick: 011 502 7300
Taryn Wulfsohn 0832731301