Category: Criteria

Request for comment: The proposed criteria titled ‘Criteria for Secured Bond Expected Loss Credit Ratings’ is exclusively applied when according an Expected Loss (‘EL’) rating to specific listed or unlisted debt obligations, specifically when distinguishable security or collateral has been pledged to the holders of the debt, which improves their recovery prospects after an event of default (relative to senior claims).

The Insurance sector risk score (ranging from 0 to 15) is 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. As a result, the operating environment analysis anchors the underlying risk score for the GCR rating methodology.

The Financial Institutions sector risk score (ranging from 0 to 15) is 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. As a result, the operating environment analysis anchors the underlying risk score for the GCR rating methodology.

The corporate sector risk score is a combination of a) cyclicality b) ease of doing business and c) sector specific dynamics scores and is intended to provide users with an overview of the major factors that impact GCR’s assessment of the relative risk of each sector.

Nigeria’s country risk score of 3.75 balances its strong economic base, supported by significant natural resources and large population, against low wealth levels, moderately weak institutional scores and currently restrained economic growth. Nigeria is one of Africa’s three largest economies, with a population of approximately 190mln people and contributing around 19% of continental GDP.