Super Group CEO on what the S&P downgrade means to the cost of borrowing

Super Group, a major transport and logistics company, has recently been downgraded by ratings agency S&P due to the significant impact of the COVID-19 pandemic on its operations across several countries. Peter Mountford, the CEO of Super Group, joined CNBC Africa to discuss the implications of this downgrade on the company's cost of borrowing. Mountford highlighted that the downgrade by S&P comes as a result of the challenges faced by Super Group's supply chain, transport, and car dealership operations in countries like South Africa, Australia, and Europe. The CEO emphasized that the company's financial health and operations have been severely impacted by the pandemic, leading to the ratings agency's decision to lower Super Group's credit rating. One key point discussed during the interview was the potential increase in borrowing costs for Super Group following the downgrade. Mountford acknowledged that a lower credit rating can result in higher interest rates and borrowing expenses for the company. This could pose challenges for Super Group as it navigates the economic uncertainties brought about by the global health crisis. Another key topic of conversation was the strategic measures that Super Group plans to implement in response to the downgrade. Mountford shared that the company is focusing on streamlining its operations, optimizing cost structures, and enhancing efficiency to mitigate the financial impact of the rating action. By proactively addressing these areas, Super Group aims to strengthen its financial position and navigate the challenging business environment. Moreover, Mountford touched upon the broader implications of the S&P downgrade for Super Group's stakeholders, including investors, lenders, and business partners. He emphasized the importance of transparent communication and ongoing dialogue with these stakeholders to manage expectations and address concerns related to the company's credit rating and financial performance. In conclusion, Peter Mountford reiterated Super Group's commitment to financial resilience and operational excellence amidst the challenges posed by the COVID-19 pandemic and the recent credit rating downgrade. The CEO expressed confidence in the company's ability to adapt, innovate, and emerge stronger from the current crisis, emphasizing the importance of strategic decision-making and prudent financial management in navigating turbulent times.