Announcements Financial Institutions Rating Alerts

ABC Holdings Limited and BancABC Botswana ratings placed on Rating Watch Evolving.

Rating Action

Johannesburg, 1st November 2019 – GCR Ratings (‘GCR’) has placed ABC Holdings Limited’s long and short-term Botswanan national scale ratings of B(BW)/B(BW) and African Banking Corporation Botswana’s (‘BancABC Botswana’) long and short-term Botswanan national scale ratings of BBB-(BW)/A3(BW) on Rating Watch Evolving. GCR is gathering additional information to conclude the rating process.

Rated Entity / Issue Rating class Rating scale Rating Outlook / Watch
ABC Holdings Limited Issuer Long Term National B(BW) Rating Watch Evolving
Issuer Short Term National B(BW) Rating Watch Evolving
African Banking Corporation Botswana Issuer Long Term National BBB-(BW) Rating Watch Evolving
Issuer Short Term National A3(BW) Rating Watch Evolving

We expect to have a follow up rating action in the next 5 business days.

Analytical Contacts

Primary analyst Nyasha Chikwengo Financial Institutions Analyst
Johannesburg, ZA NyashaC@GCRratings.com +27 11 784 1771
Secondary analyst Samanga Kudzanai Financial Institutions Associate
Johannesburg, ZA KudzanaiS@GCRratings.com +27 11 784 1771
Committee chair Matthew Pirnie Sector Head: — Financial Institutions
Johannesburg, ZA MatthewP@GCRratings.com +27 11 784 1771

Related Criteria and Research

Criteria for the GCR Ratings Framework, May 2019
Criteria for Rating Financial Institutions, May 2019
GCR Ratings Scale, Symbols & Definitions, May 2019
GCR Country Risk Scores, June 2019
GCR Financial Institutions Sector Risk Score, July 2019
LT & ST national scale ratings of ABC Holdings & BancABC Botswana placed on Rating Watch Evolving, 5 August 2019

Ratings History

ABC Holdings Limited

Rating class Review Rating scale Rating class Outlook Date
Issuer Long Term Initial National BBB-(BW) Negative December 2004
Last National B(BW) Rating Watch Evolving August 2019
Issuer Short Term Initial National A3(BW) N/A December 2004
Last National B(BW) Rating Watch Evolving August 2019

African Banking Corporation Botswana

Rating class Review Rating scale Rating class Outlook Date
Issuer Long Term Initial National BBB- (BW) Positive June 2004
Last National BBB- (BW) Rating Watch Evolving August 2019
Issuer Short Term Initial National A3 (BW) N/A June 2004
Last National A3 (BW) Rating Watch Evolving August 2019

Glossary

Capital The sum of money that is invested to generate proceeds.
Cash Funds that can be readily spent or used to meet current obligations.
Credit Rating An opinion regarding the creditworthiness of an entity, a security or financial instrument, or an issuer of securities or financial instruments, using an established and defined ranking system of rating categories.
Debt An obligation to repay a sum of money. More specifically, it is funds passed from a creditor to a debtor in exchange for interest and a commitment to repay the principal in full on a specified date or over a specified period.
Liquidity The speed at which assets can be converted to cash. It can also refer to the ability of a company to service its debt obligations due to the presence of liquid assets such as cash and its equivalents. Market liquidity refers to the ease with which a security can be bought or sold quickly and in large volumes without substantially affecting the market price.


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