GCR Background
Global Credit Rating Co. (“GCR”) can trace its origins back to 1996 when it was established as the African Arm of the New York Stock Exchange-listed Duff & Phelps Credit Rating Co. Very rapid growth followed and within only a short period the company had established itself as the market leader, employing the largest team of rating analysts in Africa and accounting for over 60% of all ratings accorded on the African continent. GCR’s African regional headquarters are based in Johannesburg, with its main SADC, Central, West and East African regional offices established in Harare, Lusaka, Lagos and Nairobi respectively. A Francophone office is currently in the process of being established in Dakar.
GCR rates the full spectrum of security classes and its core competitive advantage is based on the principal of “analytical excellence”. GCR’s unrivalled track record for ratings accuracy is evidenced by an investment grade default ratio of only 0.9% over the past 10 years, which is far and away the most accurate of any agency operating in emerging markets. GCR accords both local currency National Scale ratings (which are tiered against an assumed “best possible” rating of AAA and enable appropriate differentiation of credit quality within each country), as well as International Scale ratings (which are tiered against US government risk, incorporate all sovereign risk and currency conversion issues, and are thus directly comparable across all countries).
As a result of GCR’s unrivalled track record for ratings accuracy in emerging markets (in fact GCR reflects more favourably than both Moody’s and Standard & Poor’s US default histories), the leading investors have placed ever-increasing reliance on GCR’s ratings. Accordingly, GCR boasts the largest subscriber base in the market, encompassing over 700 local and international issuing and investing institutions and regulators. Due to GCR’s substantial scale economies and its entrenched position as the lowest cost producer in the world, our rating and subscription fees are considerably lower than the competition (typically less than half).
In developed markets it is the norm for rating agencies to be “accredited” by the relevant market authority. Such accreditation is granted once the rating agency has demonstrated its technical competence and market acceptance. GCR is officially accredited in all markets in which it operates (where such accreditation is a requirement), in fact being the ONLY international agency that can boast this feat in Africa at this point in time.
Having firmly established a market leadership position in Africa, a major thrust has been to establish a similar position in South America, Eastern Europe, Asia and the Middle East, via a combination of acquisitions, alliances, and organic growth. Currently, GCR and its International Ratings Group affiliates rate almost 1000 organisations and debt issues in over 30 countries spanning 4 continents. Regional headquarters are established in Johannesburg, Lima, and Karachi, with sub-regional offices established in a further 12 countries. In support of GCR’s objective to establish itself as “the leading international emerging markets focussed rating agency” one of the largest international Development Finance Institutions (“DEG”) acquired a significant stake in the business in December 2007. The DEG/KFW group is AAA rated internationally and has own assets well in excess of half a trillion US dollars. In August 2009 the French Government owned PROPARCO (also AAA rated internationally) became the 2nd largest institutional stakeholder in the business, facilitating GCR's expansion into Francophone markets. |
