Fitch rates iNkotha notes F1(zaf)

Fitch Ratings said it assigned South Africa-based iNkotha Investments Ltd.'s senior short-term notes a national rating of F1(zaf).

The agency said the rating is based on the credit quality of the portfolio of rated loans securing the notes, the program's sound legal and financial structure and the administrative capabilities of FirstRand Bank Ltd. (FirstRand, rated AA+(zaf)/F1+(zaf)), acting through its Rand Merchant Bank division as administrator of the program.

Fitch has rated this transaction applying its bond fund rating methodology, according to which the rating addresses only the weighted average credit quality of the portfolio. Unlike a structured finance rating for asset-backed commercial paper, a bond fund rating does not address the likelihood of investors suffering any loss from their investments since losses only lead to a pro-rata write-down of the outstanding amount of the notes, but do not constitute an event of default.

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