GCR affirms ratings for Namibia’s Trustco - CNBC Africa

GCR affirms ratings for Namibia’s Trustco

Southern Africa

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Trustco's ratings of BBB- (NA) and A3 (NA) have been affirmed by GCR. PHOTO: Getty Images

The ratings assigned to the financial services group of BBB- (NA) and A3 (NA) respectively accompany a stable outlook for both the short and long term.

(WATCH VIDEO: IFC invests in Trustco to support educational finance in Africa)

“According to the full report published by GCR, the ratings reflect an established and expanding franchise in the group’s main areas of operation – education, student/mortgage finance, insurance and property, and markets – Namibia and South Africa,” [DATA TTO:Trustco Group] said.

“Sound capital structure, low to moderating credit risk and improving profitability support the rating. Furthermore the ratings outlook considers Trustco’s enhanced prospects and strategic focus, viewed in the context of divergent macroeconomic trends in its core markets.”

Trustco also indicated that the current ratings and the stable outlook have been maintained since the first report conducted by GCR.

“This report continues to demonstrate the group’s resolve to achieve only the highest levels of success whilst maintaining a solid governance and risk framework,” it said.

“In light of the increasing trend of recent downgrades to international corporates and certain sovereigns, the fact that Trustco has managed to retain its investment grade rating and retained a stable outlook is a very positive message to shareholders and investors.”

The Windhoek-based company recently reported that its revenue increased to 843 million Namibian dollars for the year ending 31 March 2014 from 595 million Namibian dollars for the same period in 2013.

(READ MORE: Namibia’s Trustco grows revenue)

It also alluded to the sale of shares agreement initiated in the 2014 financial year, in which it sought to acquire 100 per cent of the ordinary shares in FIDES Bank Ltd – a Namibian incorporated banking institution.

“The bank operates across various branches in Namibia, employs staff and conducts banking business in terms of the Banking Act,” the company said.

“The transaction is subject to regulatory approval which, at the date of issuing these financial statements, was not yet received.”