GCR Ratings (GCR), a member of Moody Rating Agency, has raised the rating of Nedbank Zimbabwe to A+ (ZW) from A (ZW), affirming the bank’s ability to meet its obligations.
GCR’s national scale ratings specifically measure the relative credit risk of entities within a particular country, enabling investors and stakeholders to assess the risk profile of issuers in relation to their national peers.
A long-term issuer rating thus reflects the likelihood that a bank or corporation will be able to meet its long-term financial commitments, such as repayments of bonds, loans, and other forms of debt.
Concurrently, the short-term national scale issuer rating has been affirmed as A1 (ZW), reflecting the increase in competitiveness score for Nedbank Zimbabwe relative to peers in the market and the enhanced operating environment score .
At the same time, Zimbabwe is working tirelessly to address the issue of high country risk, which is standing in the way of accessing fresh lines of credit.
Nedbank managing director Sibongile Moyo said this pointed to a stabilising country risk assessment in the short term.
“This upgrade reflects the bank’s improved creditworthiness and financial stability within the Zimbabwean context,” she said.
“The affirmation of the short-term rating at A1(ZW) further reinforces confidence in the bank’s ability to meet its short-term obligations.
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“This positive rating action is a strong endorsement of Nedbank Zimbabwe’s prudent risk management, solid capital position, and improving operational performance, which are critical in a challenging economic environment.
“For Nedbank Zimbabwe clients, this upgrade is a reassuring signal of the bank’s resilience and reliability.”
Over the last decade, Zimbabwe has seen significant reforms aimed at stabilising the financial system, encouraging foreign investment and fostering sound banking practices.
Within this context, Moyo said Nedbank Zimbabwe had strategically positioned itself as a robust and innovative player, committed to delivering value to its customers and stakeholders.
“A higher credit rating enhances the bank’s reputation and can lead to better access to foreign lines of credit at potentially more favourable terms which are pertinent in this economy,” she said.
“This, in turn, may translate into improved products and services for clients, such as more competitive loan rates.
“Moreover, the stable outlook suggests that the bank is well-positioned to maintain its performance, offering clients greater confidence in the security and continuity of their banking relationship.”
Zimbabwe’s economic volatility, currency instability and periodic regulatory changes have tested the resilience of banks operating within the country over time.
Credit ratings are an essential barometer of a financial institution’s creditworthiness and long-term stability.
