GCR Ratings has published its annual bulletin on the performance of the Structured Finance Sector for 2020 and Outlook for 2021 taking account of Residential Mortgage-Backed Securities, as well as, Auto loan, Equipment lease and Microloan Asset Back Securities.
GCR Ratings has maintained the South African Medical Schemes Sector Risk Score at 7.75 following very low claims experience and strengthened solvency in 2020, which has enhanced resilience to potential earnings risk. However, we still see downside risk to membership levels amidst ongoing economic challenges.
GCR Ratings has reviewed insurance sector risk scores and increased the risk scores for Burkina Faso and Kingdom of Eswatini. At the same time, first-time insurance sector risk scores have been assigned to Gabonese Republic, Republic of Senegal and Togolese Republic.
The 2021 budget statement presented to the Ghanaian parliament on 12 March proposed the introduction of a financial sector clean-up levy of 5% of banks’ profit before tax, intended to help defray outstanding commitments in the sector. The levy will be reviewed in 2024.
GCR believes that South African REITs’ performance fundamentals will remain under pressure in 2021. However, if less restrictive COVID-19 lockdown levels remain in place, short-term operating risks should ease and allow for greater stability, although the longer-term trajectory is dependent on how REITs adjust the usage of their properties to meet the evolving requirements of tenants and their customers.
GCR has today published its annual South African Transition and Default Study, which includes all GCR’s South African national scale and international scale entity ratings from 2001 to 2020. In addition, GCR has published its initial annual African Transition and Default Study, which includes all GCR’s African national scale and international scale entity ratings from 2001 to 2020.
GCR Ratings has updated its South African Corporate Sector Risk Scores. The negative impact of COVID-19 had been taken into account in the reviews conducted in 2020. Overall, the outcome of the current review reflects a bottoming out of the operating environment.
GCR Ratings has released a Frequently Asked Questions (“FAQ”) publication on State Owned Entities (“SOEs”). The publication applies to issuer credit ratings and issue credit ratings (on both national and international scales) which have a meaningful component of Government interest, either directly through shareholding or indirectly by licensing and regulation.
GCR Ratings (“GCR”) has published the reviewed Country Risk Scores. The Country Risk assessment, which is a key part of the operating environment score, interacts with GCR ratings in four ways.
GCR Ratings has published the East Africa Short Term Insurance Bulletin, which discusses GCR’s 2020 short term insurance public credit ratings in Kenya, Tanzania and Uganda, and the 2021 outlook. The bulletin also presents graphic comparatives of financial performance of the sample of public ratings over the period 2015 to 2019.
Live Webinar and Q&A:
The South African Corporate Sector: Are things as bad as people say? Are they as good as the JSE suggests? And what about COVID-19?
Date: Wednesday 12th May 2021
Time: 1000 SAST
Duration: 1hr 30mins
Our Sector Head for Corporate and Public Sector ratings, Eyal Shevel, and Senior Corporate and Public Sector Analyst, Sheri Morgan will be discussing their opinions on a number of sectors in the corporate environment, including mining, manufacturing, construction, retail, hospitality and healthcare.
There will be a forum for questions; please feel free to submit them in advance to media@GCRratings.com or ask via the chat forum on the day.