GCR places two large construction companies on rating watch
F09 proved to be far more challenging for the construction sector compared to prior years. While the industry had already began to show signs of a slowdown, the financial crisis that unravelled in September 2008 brought certain sectors to a complete standstill. Particularly affected were projects in Dubai, which relied heavily on the availability of debt financing.
Crown Berger is accorded an investment-grade rating
GCR has accorded Crown Berger Limited (“Crown”) domestic KShs currency ratings of BBB (triple B) and A3 (single A three) for the long and short term respectively.
KDN accorded an upgrade to A
GCR has accorded Kenya Data Networks Limited (“KDN”) domestic KShs currency ratings of A (single A) and A1- (single A one minus) for the long and short term respectively.
CICA-Re maintains ratings
GCR has reaffirmed The Joint Reinsurance Company of Member States of CIMA’s (“CICA-Re”) domestic FCFA currency claims paying ability rating of AA (double A), whilst the international US$ currency claims paying ability rating remains at BB+ (double B plus). It is further noted that both ratings have been maintained on rating watch.
GCR maintains Renasa’s rating
GCR has reaffirmed Renasa Insurance Company Limited’s (“Renasa”) domestic ZAR currency claims paying ability rating of BBB+ (triple B plus), with the rating maintained on positive outlook. At the beginning of 2005, a new management team was appointed, with initial emphasis placed on more stringent risk selection. Following the cleaning out of the book, the focus shifted towards volume efficiencies and accurate pricing of business, thereby adapting the benefits of the direct business model to suit its intermediary driven distribution channels.
Sonar accorded with first time rating of single A
Société Nationale d’Assurances et de Réassurances (“Sonar”) was accorded a first time domestic FCFA currency claims paying ability rating of A (single A). The rating took into account the insurer’s leading position in the Burkina non-life insurance market, which is further augmented by the company’s membership of Globus Network of Insurance Companies, a network established in 2007 with the purpose of providing insurance solutions for multi-national companies operating throughout the African continent.
GCR Maintains West Coast’s ratings
GCR has reaffirmed the West Coast District Municipality’s (“West Coast”) domestic ZAR currency credit ratings of A- (single A minus) and A1- (single A one minus) in the long and short term respectively. West Coast, which is one of 5 district municipalities in the Western Cape, covers 31,099km2 and is host to an estimated 286,700 inhabitants.
Agribank’s rating maintained
GCR has retained Agricultural Development Bank of Zimbabwe’s (“Agribank”) long term domestic Z$ currency rating of BBB (triple B). In addition, the rating has been maintained on rating watch. The government of Zimbabwe wholly owns the bank through an equal shareholding split between the agriculture and finance ministries. Agribank’s reputable track record (established in 1999) and important role in facilitating government’s efforts to stimulate Zimbabwe’s agriculture sector benefited the rating. Government remains the financier’s sole shareholder. However, on the back of a dollarised economy, government plans to dispose of part of its shareholding to a yet unknown strategic partner in a bid to raise additional capital to fund operations. |
