Moody’s to acquire majority stake in GCR, expanding presence in Africa

Rob Fauber, President and Chief Executive Officer at Moody’s Corporation

Moody’s Corporation announced that it has successfully agreed to the terms and conditions required to acquire a majority (51%) stake in Global Credit Rating Company Limited (GCR).

Global Credit Rating Company Ltd is a leading credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.

Moody’s Corporation acquires a market leader

Rob Fauber, the President & Chief Executive Officer of Moody’s expounded on this aspect.

“GCR’s ratings play a very significant role in the growth of Africa’s financial markets through providing critical insights into credit across a range of economies and sectors.”

“By combining GCR’s successful domestic operations with Moody’s global expertise, we have a unique opportunity to expand Moody’s presence in a high-growth region.”

Marc Joffe, the Chief Executive Officer of GCR appreciated this landmark investment.

“This is an important milestone in the history of GCR. This transaction will enable us to build on our deep local market insights and a quarter-century of growth across the continent.”

“It will also provide the opportunity to further develop solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities.”

Moody’s Corporation to further growth in GCR markets

Moody’s is committed to economic transformation in South Africa and sees empowerment as an important part of the future success of its investment in Global Credit Rating Limited.

Moody’s is engaging with a South African empowerment partner to provide local strategic support via substantial equity participation and representation on the GCR South Africa board.

Moody’s and Global Credit Rating are also committed to playing a positive societal role.

Moody’s and GCR will advance corporate social responsibility initiatives, like social enterprises to provide education and support to female-owned businesses and entrepreneurs.

Following the transaction, Global Credit Rating Limited 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 Moody’s 2022 financial results.