The South African Reserve Bank (“SARB”) lowered the Repo rate by 25bps on 18 July 2019. While such decrease, albeit moderate, should free up cash for the consumer, it is viewed as positive by GCR Ratings (“GCR”) to the extent that the monies are used towards deleveraging consumers’ debt as opposed to debt-generating consumption.
GCR Ratings (“GCR”) has published an industry research piece on observed dynamics in the South African commercial property space.
The financial institutions sector risk score, assessed on a scale between 0-15, is important in a number of ways. Firstly, as a key factor in the operating environment component score. The core of the GCR Ratings Framework is based on GCR’s opinion that an entity’s operating environment largely frames its creditworthiness.