NAIROBI, Kenya Feb 2-Moody’s Corporation announced today that it has agreed to acquire a majority (51 per cent) stake in Global Credit Rating Company Limited (GCR).
GCR is a credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.
“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,” said Rob Fauber, President & Chief Executive Officer of Moody’s.
“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,” Fauber added.
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 Q2 2022 and will not have a material impact on Moody’s 2022 financial results.
“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,” said Marc Joffe, Chief Executive Officer of GCR.
