Announcements Financial Institutions Rating Alerts

GCR extends Nedbank Zimbabwe Limited’s ratings ‘Review Extension’

Rating Action

Johannesburg, 05 August 2020 – GCR Ratings (“GCR”) has extended the ‘Review Extension’ period of Nedbank Zimbabwe Limited’s national scale long term and short term issuer ratings of A(ZW) and A1(ZW) respectively. GCR originally expected that the rating process would be complete by the 7th of August 2020 and therefore issued a Market Alert on the 3rd of July 2020 for ‘Review Extension’ to that date. However, more time is required. The ratings process is ongoing and GCR expects to publicly release the updated rating results by 3rd September 2020. The ratings affirmed in the last review are still in effect and remain unchanged until the ratings review process is completed.

Analytical Contacts

Primary analyst

Vimbai Muhwati

Financial Institutions Analyst

Johannesburg, ZA

VimbaiM@GCRratings.com

+27 11 784 1771

     

Committee chair

Vinay Nagar

Senior Financial Institutions Analyst

Johannesburg, ZA

Vinay@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 Country Risk Scores, May 2020

GCR Rating Scales, Symbols and Definitions, May 2019

GCR Financial Institutions Sector Risk Score, July 2020

GCR reviews seven Zimbabwean financial institutions under the new criteria, July 2019

GCR places Nedbank Zimbabwe Limited’s national scale issuer rating of A(ZW) on ‘Review Extension’, July 2020

Jurisdictional Supplement for Criteria, July 2020

Ratings History

Nedbank Zimbabwe Limited

Rating class

Review

Rating scale

Rating class

Outlook/Watch

Date

Long Term issuer

Initial

National

A(ZW)

Stable

August 2017

Last

National

A(ZW)

Stable

July 2019

Short Term issuer

Initial

National

A1(ZW)

Stable

August 2017

Last

National

A1(ZW)

Stable

July 2019

SALIENT POINTS OF ACCORDED RATING

GCR affirms that a.) no part of the ratings process was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument.

The credit ratings have been disclosed to the rated entity. The ratings above were solicited by, or on behalf of, the rated entity, and therefore, GCR has been compensated for the provision of the ratings.

The rated entity participated in the rating process via face-to-face management meetings, teleconferences and other written correspondence.

Due to severe foreign currency shortages, hyperinflation and significant monetary and exchange control policy changes over the last 12-18 months in our opinion, the national scale credit ratings on Zimbabwean entities are not directly comparable to credit ratings and risk scores within other markets. Furthermore, outlook statements may fail to capture forward looking trends due to the extreme volatility in the operating environment and audited opinions. See the latest Jurisdictional Supplement for Criteria, published July 2020.

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