Global credit ratings agency Moody’s Corporation on Wednesday announced that it has agreed to purchase a majority 51% stake in African-based competitor Global Credit Rating Company (GCR).
The group did not reveal the value of the deal.
Moody’s said in a statement that it dedicates itself to local economic transformation and thus “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,” it said.
Moreover, the pair plans to advance local corporate social responsibility initiatives by launching activities that will provide education and support to female-owned businesses and entrepreneurs.
“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 Moody’s president and CEO Rob Fauber.
“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.”
GCR traces its origins back to 1996 and was instituted as the African Arm of the New York Stock Exchange-listed Duff & Phelps.
Following its rapid growth, the agency has since established itself as a market leader, accounting for many ratings accorded in the African continent in countries including South Africa, Nigeria, Senegal, Kenya, and Mauritius.
“This transaction will enable us to build on our deep local market insights and a quarter-century of growth across the continent,” said Marc Joffe, CEO of GCR.
“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.”
* Palesa Mofokeng is a Moneyweb intern.