The Global Credit Rating (GCR) agency recently affirmed Bank Windhoek’s Namibian long and short-term national scale issuer ratings AA(NA)/ A1+(NA), respectively. At the same time, the South African long-term issuer rating has been affirmed at A(ZA). The affirmation means that the rating outlooks remain stable.
The international scales and definitions of AA, which is a long-term rating, mean that the obligor, also known as a debtor, has very strong creditworthiness, and A1+, which is for the short-term rating, showcases the highest likelihood of timely payment of short-term obligations. The scale issuer credit ratings are assigned to legal and legislative entities. They assess the relative ability of an entity to meet its long and short-term contractual financial obligations as they fall due.
Bank Windhoek’s Chief Treasurer, Claire Hobbs, said that as one of the biggest banks in Namibia leading the market in credit extension, the Bank is proud of the achievement. She said that as a proud Namibian bank, the consistent rating results are due to the Bank’s strong relationships with its customers, vendors, and employees, relationships built on trust and respect. The reviews added that GCR views Bank Windhoek as the Capricorn Group’s core operating entity and flagship brand. GCR further said that the rating affirmation balances the Group’s solid and entrenched position as a leading financial services provider in Namibia with good asset quality.
About the Global Credit Rating
In support of GCR’s objective to further solidify its position as a leading provider of quality, objective, and independent credit opinions on African markets, Moody’s Corporation acquired a majority 51% stake in GCR in May 2022. It increased its stake to 100% in July 2024. The Corporation’s entity, Moody’s Ratings, provides data, intelligence and play a crucial role in global capital markets as credit analysis providers for banks and other financial institutions in assessing the credit risk of securities.
Established in 1996 GCR as the African arm of the New York Stock Exchange, the credit agency has since established itself as the leading rating agency in Africa. GCR has the most extensive rating team in Africa through its local presence in Mauritius, South Africa, Nigeria, Kenya and Senegal. GCR is also recognised as an eligible External Credit Assessment Institution (ECAI) by the South African Reserve Bank. It is also a founding member of Europe-based ARC Ratings, registered with the European Securities and Markets Authority. GCR’s ratings play a significant role in the growth of Africa’s financial markets by providing critical insights into credit across various sectors.
The report said that the ratings of Bank Windhoek reflect the strengths and weaknesses of Capricorn Group Limited. As such, the ratings of Bank Windhoek are equalised to the Group’s Anchor Credit Evaluator (ACE), which systematically assesses an entity’s creditworthiness, considering financial data, payment history, and other relevant factors. Conducted by lenders, ACE informs decisions on loan approvals, interest rates, and credit limits.
The report added that the ratings reflect Capricorn Group’s market-leading position in Namibia’s banking industry via Bank Windhoek, demonstrably conservative risk profile, and a stable funding and liquidity structure. “With substantial market positions concerning assets (30.4%), advances (35.5%), and deposits (30.6%) as of 30 June 2024, Bank Windhoek is a strongly positioned domestic commercial bank, whose leading market position continues to be demonstrated by defensive revenue streams and sound client retention,” said the report, adding that the Group’s liquidity is sound, with both Bank Windhoek and Bank Gaborone comfortably exceeding minimum regulatory liquidity metrics.