South African based Global Credit Ratings (“GCR”) has announced the withdrawal of national scale ratings assigned to Kenyan retailer Nakumatt Holdings, without affirmation.
At the last rating review in December 2016, the agency highlighted the severe deterioration in Nakumatt’s credit risk profile, whereby the ratings were downgraded and placed on Rating Watch.
The latest withdrwal was premised on management’s expectation of a substantial capital injection by early 2017, although no funds have been received to date. Nakumatt has not provided GCR with comprehensive and sufficient information to enable it to determine the appropriate ratings, and accordingly, GCR has terminated rating coverage on Nakumatt Holdings Limited.
This is a huge setback for Nakumatt given that the termination will make it incredibly difficult for the retailer to attract new investment which is much needed at this time.