Announcements

Global Credit Ratings updates its mapping table for South Africa

Johannesburg, 17 May 2018 – Global Credit Ratings (“GCR”) has updated its mapping table for South Africa. The mapping table displays the mapping between GCR’s national scale ratings and its international scale, local currency ratings for South Africa.

RATING RATIONALE

The updated mapping table follows the revision of the Republic of South Africa’s sovereign ratings by various accredited credit rating agencies. GCR’s mapping table specifies the international scale, local currency ratings that can be accorded to each South African national scale rating.

The updated mapping table for South Africa, effective from 17 May 2018, is shown below:

GCR International Scale to National Scale Mapping Table – South Africa ( 2018-05-17
International Scale Rating, Local Currency National Scale Rating
BB+ and above AAA(ZA) 
BB+ AAA(ZA) / AA+(ZA) / AA(ZA) 
BB AA-(ZA) / A+(ZA)
BB- A(ZA) / A-(ZA)
B+ BBB+(ZA) / BBB(ZA) / BBB-(ZA)
B BB+(ZA) / BB(ZA) / BB-(ZA)
B- B+(ZA) / B(ZA) / B-(ZA)
CCC CCC(ZA)
LD/DD LD(ZA) / DD(ZA)

GCR’s national scale sovereign credit rating for the Republic of South Africa remains at AAA(ZA). In this respect, GCR continues to view the sovereign state as an appropriate benchmark for the lowest relative risk within the country (while also noting the potential for other local entities to evidence an equivalent level of credit strength). Similarly, as the revision to GCR’s mapping table follows a change in sovereign risk in a global context, the updated mapping table is not expected to have any significant impact on national scale ratings.

For comparative purposes, the previous version of the mapping table for South Africa, published on 26 April 2017, is shown below. Please note that this mapping table has been replaced by the mapping table above, and is no longer applicable.

Previous GCR International Scale to National Scale Mapping Table – South Africa ( 2017-04-26
International Scale Rating, Local Currency National Scale Rating
BBB- and above AAA(ZA) 
BBB- AAA(ZA) / AA+(ZA)
BB+ AA+(ZA) / AA(ZA) / AA-(ZA)
BB AA-(ZA) / A+(ZA) / A(ZA)
BB- A(ZA) / A-(ZA) / BBB+(ZA)
B+ BBB(ZA) / BBB-(ZA)
B BB+(ZA) / BB(ZA) / BB-(ZA)
B- B+(ZA) / B(ZA) / B-(ZA)
CCC CCC(ZA)
LD/DD LD(ZA) / DD(ZA)

ANALYTICAL CONTACTS

Primary Analyst Committee Chairperson

Marc Chadwick Yohan Assous
Sector Head: Insurance Ratings Sector Head: Structured Finance Ratings
(011) 784 – 1771 (011) 784 – 1771
chadwick@globalratings.net yohan@globalratings.net

APPLICABLE METHODOLOGIES AND RELATED RESEARCH

GCR’s South African Mapping Tables (2015-2017)

RATING LIMITATIONS AND DISCLAIMERS

ALL GCR’S CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://GLOBALRATINGS.NET/UNDERSTANDING-RATINGS. IN ADDITION, GCR’S RATING SCALES AND DEFINITIONS ARE ALSO AVAILABLE FOR DOWNLOAD AT THE FOLLOWING LINK: HTTP://GLOBALRATINGS.NET/RATINGS-INFO/RATING-SCALES-DEFINITIONS. GCR’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, PUBLICATION TERMS AND CONDITIONS AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE AT HTTP://GLOBALRATINGS.NET.

GLOSSARY OF TERMS

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.
International Scale Rating LC International local currency (International LC) ratings measure the likelihood of repayment in the currency of the jurisdiction in which the issuer is domiciled. Therefore, the rating does not take into account the possibility that it will not be able to convert local currency into foreign currency or make transfers between sovereign jurisdictions.
National Scale Rating The national scale provides a relative measure of creditworthiness for rated entities only within the country concerned. Under this rating scale, a ‘AAA(XX)‘ long term national scale rating will typically be assigned to the lowest relative risk within that country, which in most cases will be the sovereign state.

For a detailed glossary of terms please click here

https://globalratings.net/uploads/files/Market_Announcement_GCR_Mapping_Table_update_20180517.pdf

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ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://GCRRATINGS.COM. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT WWW.GCRRATINGS.COM/RATING_INFORMATION. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR's CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THIS SITE.

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