GCR Ratings has taken note of the recent geopolitical events from 7 July 2021 which sparked violent looting and riots in Kwa-Zulu Natal and Gauteng amongst others. Although these events were sudden and resulted in significant losses to property and lives, it is considered to have a limited impact on the broader credit risk profile of the country and our issue(r) credit ratings in South Africa at the moment
GCR Ratings has assigned the Zimbabwean Medical Schemes Sector Risk Score of 1.75. The score is underpinned by very limited regulatory oversight and transparency on industry performance, albeit evidencing low risk to earnings. However, we still see downside risk to membership levels amidst ongoing economic challenges.
GCR has published an update to the Criteria for Secured Bond Expected Loss Credit Ratings. The criteria is available for download at GCRratings.com/criteria. The 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).
GCR Ratings has updated its Nigerian Corporate Sector Risk Scores. Inclusion of a risk score for secondary manufacturing, initial score of 2.0 There are no changes to other sector risk scores as the last publication (released in February 2021) took into cognisance the negative impacts of COVID-19 and the general operating environment.
GCR Ratings has updated its Commercial Property Sector Risk Score for selected European territory groupings and countries outside South Africa. This cross-jurisdictional publication serves to complement the pre-existing South African and Kenyan property sector risk scores reviewed in 2021. GCR remains cognisant of the highly diversified nature of real estate fundamentals in the Eurozone in particular, thus the regional sector risk scores assigned capture our high-level view of the potential impact of structural factors and economic growth expectations on broader real estate investment and performance sustainability compared to other sectors.
GCR Ratings has published the reviewed Country Risk Scores. The Country Risk Scores are available for download at https://gcrratings.com/risk-scores/. The Country Risk assessment, which is a key part of the operating environment score, interacts with GCR ratings in four ways. Firstly, the country risk scores create the foundation for the Anchor Credit Evaluator (the mapping table, see the Criteria for the GCR Ratings Framework and the interactive online map at GCRratings.com/criteria).
GCR Ratings has published a Special Report explaining the significant role of portfolio covenants and early amortisation triggers in Structured Finance transactions. The report explains how portfolio covenants and early amortisation triggers are used to contain the risk caused by the purchase of new assets by a Special Purpose SPV’s (“SPV’s”) portfolio during the revolving period and how they are used to safeguard Noteholders against a potential deterioration of the transaction’s performance.
It’s our birthday! We are proud to announce that GCR has been operating as an African-focused Credit Rating Agency for 25 years.
GCR was established with a vision of becoming the #1 provider of quality, objective, and independent credit opinions in Africa, and of building the largest African ratings coverage through an expanded geographic footprint.
GCR’s Group Head of Ratings, Matt Pirnie, provided an overview of the Kenyan and Rwandan banking sectors.
GCR Ratings has maintained the South African Financial Institutions’ sector risk score of ‘7.5’. 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.