Global Credit Ratings clarifies its not exiting Kenya
South Africa's Global Credit Ratings (GCR) has clarified that it is still operating in Kenya and is not contemplating a withdrawal. The clarification comes after a recently issued Kenya Gazette notice caused some confusion regarding GCR’s presence in Kenya.
According to the CEO, Marc Joffe, GCR is simply relinquishing one of two licenses issued to it by the Kenyan Capital Markets Authority (CMA) and this has no impact on its operations in Kenya.
GCR was one of the first rating agencies to be approved and registered under the CMA’s ‘Guideline on the Approval and Registration of Credit Rating Agencies in Kenya’ several years back. In 2017, the Carlyle Group (one of the largest private equity funds in the world) acquired a significant shareholding in GCR. GCR subsequently relocated its holding company to Mauritius, following which this new company applied for and received a license from the CMA in 2018, leaving GCR with two licenses.
Subsequently, GCR approached the CMA and requested to relinquish its original license which is now redundant. The request was granted by the CMA late last year. In line with its procedures, the CMA recently published the proposed revocation of GCR’s old License in the Kenya Gazette, inviting the public for comments on whether there are any objections to the revocation of this license.
Should the CMA not receive any responses within 60 days of the publication, it will go ahead and revoke GCR’s old license. This will have no impact on GCR’s operations as the rating agency will remain registered in Kenya.
GCR is Africa’s leading credit rating agency, covering in excess of 500 rated entities across more than 20 countries. GCR commenced operations as a credit rating agency in Kenya almost 20 years ago, and has grown its portfolio of rated entities to more than 50 in this market, and over 70 across the entire COMESA region (including Kenya).
GCR’s portfolio of rated entities in Kenya is unparalleled and more than all other rating agencies combined, and encompasses a number of the country’s leading corporations that have been rated by GCR for many years.
‘’Kenya has been, and remains a key market for GCR, and we are in fact exploring new opportunities and possible additional investments to further enhance GCR’s leading market position and value proposition for all stakeholders,’’ concludes Mr. Joffe.