GB Auto received a BBB+ rating with a stable outlook from the Middle East Rating and Investors Service (MERIS).
GB Auto is currently preparing for its five-year LE 1 billion unsecured bond, which will bear a fixed coupon rate of 12 percent to be paid quarterly.
The proceeds of the bond, which is a nonconvertible bond and callable starting January 1st, 2012, will finance the company's planned capex, in addition to any potential acquisitions, Beltone said.
"We believe that GB Auto has done a good job at strengthening its balance sheet in the past two years and has room to leverage its position further at this point."
The firm confirmed its positive stance on GB Auto, citing the natural recovery in the passenger car market; the company's strong position in the local market; and the taxi replacement program.
There's also an expected improvement in the market for commercial vehicles and "a strong management team that has steered the company's operations in the right direction during the crisis."
© Daily News Egypt 2010
