Curro Holdings Limited (JSE: COH) announced that GCR Ratings has affirmed its long-term and short-term national scale issuer ratings at A(ZA) and A1(ZA) respectively. The outlook remains stable.
Key Highlights
- Ratings Affirmed: GCR Ratings affirms Curro’s long-term rating at A(ZA) and short-term rating at A1(ZA).
- Stable Outlook: The outlook remains stable, reflecting expected firm revenue and earnings growth.
- Key Factors: Improved operating performance, solid competitive position, modest gearing levels, and good liquidity.
Improved Operating Performance
Curro’s improved operating performance is a key factor in the ratings affirmation. The company has demonstrated significant growth in revenue and earnings. This growth is driven by the high demand for private education in South Africa.
Modest Gearing Levels
Curro’s financial health is reflected in its modest gearing levels. The company has managed to keep its debt at manageable levels. This prudent financial management contributes to the company’s overall stability and creditworthiness.
Good Liquidity
Curro’s good liquidity position is another positive factor noted by GCR Ratings. The company has sufficient liquid assets to meet its short-term obligations. This strong liquidity position ensures that Curro can operate smoothly and handle any unexpected financial challenges.
Favourable Demand Trends
The stable outlook is supported by favourable demand trends in the private education market. There is a growing preference for private education in South Africa. This trend is expected to continue, providing a steady stream of revenue for Curro.
Future Growth Prospects
GCR Ratings expects Curro to benefit from firm revenue and earnings growth. The company is well-positioned to capitalize on the increasing demand for private education. Curro’s strategic initiatives and expansion plans are likely to support this growth.
Credit Rating Table
| Rating Type | Rating | Outlook |
|---|---|---|
| Long-term National | A(ZA) | Stable |
| Short-term National | A1(ZA) | Stable |