Moody’s Corporation announced that it has agreed to acquire a majority (51%) stake in Global Credit Rating Company Limited (GCR).
GCR is a leading credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.
“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 Rob Fauber, President & Chief Executive Officer of the global firm.
Moody’s and GCR are also committed to playing a positive societal role.
In South Africa, the corporation and GCR intend to advance corporate social responsibility initiatives, including social enterprises that provide education and support to female-owned businesses and entrepreneurs.
Following the transaction, GCR will continue to develop its own rating methodologies, issue its own credit ratings, and maintain a separate management team.
The transaction is subject to customary regulatory approvals. The terms of the transaction were not disclosed, and it will be funded with cash on hand.
The transaction is expected to close in Q2 2022 and will not have a material impact on the global firm’s 2022 financial results.
ALSO READ: Moody’s Maintains Negative Outlook on Sub Saharan African Economies
