Fitch affirms Steinhoff

Fitch Ratings said it affirmed South African Steinhoff International Holdings Ltd.'s national long-term rating at A-(zaf) and national short-term rating at F2(zaf), along with the domestic medium-term note issue rating of Steinhoff's subsidiary, Unitrans Services (Pty)Ltd. at A-(zaf).

Phaello Finance Co. (Pty)Ltd.'s domestic medium-term note issue's long-term rating also was affirmed at A-(zaf) and national short-term rating at F2(zaf).

Both these subsidiaries' issue ratings are aligned with those assigned to Steinhoff, and any change in Steinhoff's rating will directly impact these subsidiaries' ratings, Fitch said.

The outlook is stable.

The affirmations reflect an expectation that Steinhoff's credit profile should continue to moderate over the medium-term as the domestic and global economic recovery gathers pace in 2011 and 2012, the agency said.

Challenging market conditions are expected to persist in the group's United Kingdom furniture retail businesses, which may limit the pace of de-leveraging, Fitch said.

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