Capricorn Investment Group Limited’s outlook stable – Global Credit Ratings
Global Credit Ratings has affirmed the national scale ratings assigned to Capricorn Investment Group Limited and Bank Windhoek’s AA(NA) and A1+(NA) in the long term and short term respectively; with both outlooks accorded as Stable.
In statement released this week, the agency said the rating has been affirmed based on the adequate capitalisation, growing earnings, adequate funding and liquidity of the Group.
The agency explained that the group’s competitive position is strong, supported by a large market share in an oligopolistic Namibian banking industry with high barriers to entry.
“The stable outlook reflects our assumption that the economic climate is improving and thus the performance of the Group is bound to stabilise with an expectation of growth in earnings and in the long-term an improvement in asset quality. The Group has a strong competitive position particularly in Namibia through its subsidiary Bank Windhoek Limited. Bank Windhoek contributes 78.7% to Group assets and is the 2nd largest bank in Namibia with a 29.8% market share of industry assets,” the statement read.
Furthermore, the agency noted that the Group’s substantial market position within the Namibian economy and strong South African shareholder base makes it well positioned to take advantage of positive growth and infrastructure/other development within the domestic economy.
“Other non-banking subsidiaries and associates (offering asset management, unit trust management products and services, property development and long and short-term insurance) contributed 4.3% of consolidated assets and 11.4% of pre-tax profits at FY18,” the rating agency added.