Announcements Criteria Research

GCR Requests Public Comment on Draft Appendix to Criteria for Rating FSCs: Asset Management Issuer Credit Ratings

GCR introduces the draft Appendix to Criteria for Rating Financial Services Companies: Asset Management Issuer Credit Ratings, representing a new approach to the analysis of credit ratings for Asset Managers. This proposed criteria appendix acts as a supplement to GCR’s Criteria for Rating Financial Services Companies, published in May 2019, providing a breakdown of how the components are to be assessed and scored for entities falling within its scope. Consequently, it must be read in conjunction with the criteria, which can be found at GCRratings.com/criteria.

Announcements Criteria Research

GCR Requests Public Comment on Draft Criteria for Rating Investment Holding Companies

GCR introduces the draft Criteria for Rating Investment Holding Companies, representing a new approach to the analysis of investment holding companies. The draft criteria includes a summary of how it fits into the overarching Criteria for the GCR Ratings Framework, published on 22nd May 2019 (GCRratings.com/criteria). The criteria includes a proposed scope, together with a breakdown of how each of the components are to be assessed and scored.

Announcements Criteria Research

GCR publishes industry research on the South African private healthcare sector and updates the South African Sector Risk Score Report

GCR will periodically provide insights on key sectors/industries across different territories in which various rated entities are domiciled, encompassing changes in the operating environment, performance trends and its view of the impact of an evolution in market dynamics on the credit risk profiles of rated entities in selected industries.

Announcements Criteria Research

GCR Publishes Kenyan Corporate Sector Risk Scores

GCR utilises the corporate sector risk scores in conjunction with the country risk score, to determine the operating environment risk score for each individual sector within the Kenyan environment. The following sector risk scores are intended to provide users with an overview of the major factors that impact GCR’s assessment of the relative risk of each sector in the local economy. The following list is not a comprehensive list of all sectors of the economy, but largely covers GCR’s Kenyan corporate rating universe. Additional sector risk scores will be introduced as necessary.

Announcements Criteria Research

GCR Publishes the South African Medical Schemes Sector Risk Score

GCR views industry solvency to be prudent, benefitting from adequate reserve accumulation, inherently low product risk, and comparatively contained levels of market risk exposure. Regulatory oversight contributes towards continuing reserve sufficiency across the industry, while a high level of information transparency and availability supports a strong regulatory assessment. Active regulatory intervention has enforced key legislative measures such as corporate governance effectiveness, while also facilitating market consolidation in the interests of member protection.

Announcements Criteria Research

GCR publishes the sector risk score for Spanish commercial property

The Spanish sector risk score of ‘8’ is reflective of expectations of stable annuity income, supported by medium-long term leases, improving occupancy rates and generally good access to capital. The overall sector risk profile is weaker when compared to those of more developed European counterparts, as Spanish real estate is viewed as a more speculative investment proposition that is prone to higher earnings and value variability through the cycle.

Announcements Criteria Research

GCR Publishes Insurance Sector Risk Scores for Benin, Botswana, Cameroon, Ghana, Malawi, Mauritius, Philippines and Tanzania

GCR Publishes Insurance Sector Risk Scores for Benin, Botswana, Cameroon, Ghana, Malawi, Mauritius, Philippines and Tanzania. 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.