The role of a rating agency is to independently differentiate credit quality across all industry sectors and investment instruments, with the purpose of providing investors with the information on which to base appropriate investment and pricing decisions. Accordingly, a formal rating provides an independent and internationally recognised measurement of an organisation's financial strength. A favourable rating can immediately result in an increased pool of investors, can facilitate direct access to capital markets and can ultimately result in reduced funding costs. Furthermore, the extensive distribution of the detailed rating report can prove to be a highly effective complement to an organisation's own investor relations activities.

Finally, quite apart from the rating, the process provides a useful management tool insofar as it provides management with the benefit of a knowledgeable, independent, third party opinion on the organisation and its operations (including the results of an extensive “benchmarking” process across a wide range of financial, operational and control variables).

In the final analysis, a rating agency is judged on the accuracy of its ratings over a prolonged period of time, and its track record for pro - actively (rather than reactively) adjusting its ratings to take into account changing circumstances over time. When the agency can prove that there is a great deal of correlation between its rating symbols and probability of default, then the market can place reliance on these ratings for purposes of establishing investment/counterparty limits, pricing for credit risk and monitoring credit exposures. This is where the likes of S&P and Moody's have established such a strong track record in the US and other developed markets.

Crucially, GCR has now established an unrivalled track record for ratings accuracy in emerging markets. With an overall investment grade default ratio of only 0.9% over the past 10 years (despite severe emerging market crises and “systemic shocks”), this is far and away the most accurate of any agency operating in emerging markets. In fact GCR reflects more favourably than both Moody's and Standard & Poor's US default histories. As a result, there is a direct correlation between GCR's ratings and the yields demanded by investors.

GCR's core competitive advantage is based on the principal of “analytical excellence”, market penetration and distribution.

GCR offers issuers the following specific benefits:

• A large subscriber base - GCR has the largest subscriber base in the market, encompassing over 700 local and international issuing and investing institutions.
  
• Market leadership in Africa - GCR currently occupies the market leadership position in all rating sectors, rating more companies in Africa than all other rating agencies combined.
  
• Proven ratings accuracy and analytical excellence - GCR's unrivalled record with regards to rating accuracy has earned the company significant respect amongst the investing community, facilitating improved risk pricing.
  
• Highly competitive pricing - Due to GCR's substantial scale economies and its entrenched position as the lowest cost producer in the world, GCR is able to charge rating and subscription fees that are considerably lower than the competition (typically less than half).
  
• Full regulatory recognition - GCR is officially accredited in all markets in which it operates (where such accreditation has been made a requirement), in fact being the ONLY international agency that can boast this feat in Africa at this point in time.   
• Extensive coverage - GCR's ratings feature widely in leading and international finacial journals, while GCR's ratings are also available on all Bloomberg's terminals.