By Adedapo Adesanya
Moody’s Corporation has announced the acquisition of a majority stake, about 51 per cent, in Global Credit Rating Company Limited (GCR) as part of efforts to expand its footprints in Africa.
GCR is a leading credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.
Speaking on the expansion and its acquisition of the stake in GCR, Mr Rob Fauber, President and Chief Executive Officer of Moody’s said, “GCR’s ratings play a significant role in the growth of Africa’s financial markets by providing critical insights into credit across a range of economies and sectors.
“By combining GCR’s successful domestic operations with Moody’s global expertise, we have a unique opportunity to expand Moody’s presence in a high-growth region.”
On his part, Mr Marc Joffe, Chief Executive Officer of GCR noted that the procurement of the stake is an important milestone in the history of GCR.
“This transaction will enable us to build on our deep local market insights and a quarter-century of growth across the continent. It will also provide the opportunity to further develop solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities,” he added.
Moody’s said it is committed to economic transformation in South Africa and sees empowerment as an important part of the future success of its investment in GCR.
To this end, Moody’s is engaging with a South Africa-based empowerment partner who will provide local strategic support through substantial equity participation and representation on the GCR South Africa board.
Moody’s and GCR are also committed to playing a positive societal role. In South Africa, Moody’s and GCR intend to advance corporate social responsibility initiatives, including social enterprises that provide education and support to female-owned businesses and entrepreneurs.
Following the transaction, GCR will continue to develop its own rating methodologies, issue its own credit ratings, and maintain a separate management team.
The transaction is subject to customary regulatory approvals. The terms of the transaction were not disclosed, and it will be funded with cash on hand.
The transaction is expected to close in the second quarter of 2022 and will not have a material impact on Moody’s 2022 financial results.
Modupe Gbadeyanka