Sovereign Africa Ratings in advanced talks with SA, Botswana

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The local rating agency, Sovereign Africa Ratings, says it is in advanced discussions with South Africa and Botswana to officially undertake requested credit assessments of both countries.

This follows its previous unrequested credit ratings released on South Africa last year.

The agency is currently collaborating with Ghana and Kenya.

Sovereign Africa Ratings is a local agency that evaluates the credit worthiness of sovereign nations, regional and municipal governments, and other entities operating in Africa.

The agency says it is gradually taking over the space occupied by the three dominant international credit rating agencies – Moody’s, Fitch and S&P.

It says it is confident that it will win the support of investors due to its robust methodologies.

In addition, it has been conducting unsolicited sovereign ratings in several African countries, including South Africa.

COO of Sovereign African Ratings, Zwelibanzi Maziya says, “For South Africa, I do not think we are at risk of that because the economy has little growth and is recovering but on Sub-Saharan Africa, our biggest concern is the high inflation and sluggish GDP growth.”

Maziya says this year marks the potential for the rating agency to conduct its inaugural solicited sovereign ratings review.

He further says that South Africa and Botswana could be the first on the list.

“We have been engaging with a number of countries and institutions and have noted that there is a need for alternative opinions we have talked to Botswana as well as South Africa.”

The rating agency says that some state-owned companies will not fail due to the government’s support, but it says it has concerns about some municipalities due to their financial struggles.

However, the agency believes that it stands a better chance on the Africa continent due to its access to a lot of stakeholders across the continent.

VIDEO | Africa’s first rating agency launched Sovereign Africa Ratings:

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-Report by Matimu Khosa 

Source: SABC News (