Ex-Ethos company stays firm

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).

See issuer profile here