AFRICA – Moody’s Corporation has fully acquired Global Credit Rating (GCR), a leading credit rating in Africa, accounting for most of the ratings issued in the region.
This move expands the company’s footprint in Africa’s domestic credit markets. The terms of the deal were kept under wraps.
Global Credit Rating has a presence across the continent, including in Nigeria, South Africa, Kenya, Senegal, and Mauritius.
The firm rates various entities, including financial institutions, corporates, public sector issuers, and structured transactions.
Post-acquisition, GCR will continue operating as an affiliate of Moody’s, developing its independent rating methodologies, issuing credit ratings, and maintaining a distinct management team.
Combining Global Credit Rating’s solid footprint in the African market with Moody’s worldwide expertise will bolster the latter’s presence in the high-growth markets.
Rob Fauber, Moody’s chief executive officer, said, “GCR provides investors with crucial insights and clarity into Africa’s fast-growing domestic credit markets, which play an important role in economic development throughout the continent.”
This strategic move will be immaterial to MCO’s 2024 earnings. This buyout aligns with Moody’s inorganic growth strategy.
“The full acquisition of GCR by Moody’s is an important milestone that will enable us to build on our deep local market insights and over a quarter century of growth across the African continent,” Marc Joffe, CEO of Global Credit, stated.
“It will also provide the opportunity to develop further solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities.”
Over the past several years, Moody’s has been strengthening its footprint and credit rating solutions through strategic acquisitions/partnerships. In 2023, it acquired SCRiesgo to boost its presence in Central America and the Dominican Republic.
In 2022, it acquired 360kompany AG to strengthen its Know Your Customer capabilities. In 2021, it acquired PassFort Limited, Bogard AB, RMS, and Cortera. Its inorganic growth efforts are expected to help further diversify revenues and expand its global reach.
Over the past six months, shares of Moody’s have rallied 14.8%, compared with the industry’s 2% growth.
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