An Ex-Ethos Private Equity South Africa-based financial services portfolio company’s national scale primary rating has been kept at SQ1-(ZA) by GCR Ratings.
Transaction Capital Risk Services (TCRS) has been affirmed due to its strong debt collection profile, stable technology and internal control environment, good management team and a strong financial profile.
Meanwhile, GCR has also affirmed TCRS’s national scale special servicer rating at SQ1(ZA), with a stable outlook.
Ethos was invested in TCRS through its parent company, Transaction Capital, a South Africa-based financial services holding company.
The investor exited Transaction Capital in 2015, after a 10-year holding period, having first backed the company in 2005.
Ethos had backed the company through Ethos Private Equity Fund V, a $750 million (R5.5 billion) vehicle closed in 2006.
Ethos first invested in the company through Kanderlane, a South Africa-based financial services company, which was later renamed Paycorp.
Two years later in 2007, Paycorp was merged with Transaction Capital, a deal that saw Ethos take up a stake in the entire entity.
The investor injected an additional R100 million into Transaction Capital in 2012, prior to the listing on the Johannesburg Stock Exchange (JSE).