S&P affirms Eqstra Holdings' rating

Cape Town - S&P’s Rating Service on Wednesday affirmed Eqstra Holdings Limited’s [JSE:EQS] zaBBB+ rating.

In its assessment, S&P recognised “the challenging domestic environment” but noted Eqstra’s “resilient financial performance”.  It also pointed to a “prudently managed capital expenditure and cost growth approach to support earnings resilience and build capital and liquidity buffers for the next year”.

S&P said: "We believe that the sluggish growth environment in South Africa will restrain earnings growth over the next 12 months, but that Eqstra's performance will be resilient owing to its focus on cost control and its focus on profitable projects and top-quality corporates with robust financial profiles.”

Commenting on the rating, Eqstra CEO Walter Hill said:“This affirms our diverse funding and operating strategy in some tough trading conditions. We recognised the additional challenge of a conservative domestic capital market and proactively adjusted accordingly."