Capricorn’s Namibian long and short-term issuer ratings were affirmed at AA-(NA) and A1+(NA), with a Stable outlook by rating agency, Global Credit Ratings Company (GCR).
Bank Windhoek’s Namibian long and short-term issuer ratings were affirmed at AA(NA) and A1+(NA), with a Stable outlook.
Bank Windhoek’s South African national scale long-term issuer rating has been affirmed at A(ZA), with a Stable outlook.
The ratings affirmation and Stable outlook is premised on Capricorn Group’s strong and entrenched position as a leading financial services provider in Namibia and good asset quality, against adequate funding and liquidity and below peer capitalization (based on the GCR total capital ratio).
“We expect the credit profile of the group to remain anchored by its strong competitive position in the Namibian market, while the recent asset quality pressures are likely to subside over the next two years as credit losses improve to 0.7%. The latter may also support continued earnings momentum, and along with loan growth expectations of 3%-5% and a consistent dividend policy, sustain an adequate, but stable GCR total capital ratio of between 12.5%-12.7% over the rating horizon,” the ratings agency said.
