GCR Ratings (GCR) has upgraded the Namibian national scale long-term issuer ratings for Letshego Holdings Namibia, Letshego Bank Namibia, and Letshego Micro Financial Services Namibia to A+(NA) from A(NA).
The short-term issuer ratings of A1(NA) were reviewed by GCR and maintained at the current levels, while the outlook has been revised to Stable.
Key drivers of the upgrade include Letshego’s listing of the first social bond on the Namibian Stock Exchange, raising N$322 million, with N$260 million issued in three-year senior unsecured notes.
The proceeds will support financial inclusion for underserved communities by funding sectors such as affordable housing, healthcare, and education.
“The Group’s asset quality remains robust, with non-performing loans at 5.8% (below the industry average of 6%) and low credit losses at 0.3%. Capitalisation is strong, with a GCR capital ratio of 42.0% as of December 2023,” Letshego stated.
“Letshego continues to diversify its funding base while maintaining a resilient financial profile. Liquidity remains adequate, with liquid assets covering short-term wholesale funding at 1.3x as of December 2023.”
Letshego Namibia Chief Financial Officer, Karl-Stefan Altmann, said, “This upgrade reflects Letshego’s enhanced competitive position, solid asset quality, strong capitalisation, and commitment to responsible lending.”
Letshego Holdings Namibia is a leading financial services provider in Namibia, offering a range of micro-lending and banking services through its network of 17 branches across the country.
GCR Ratings is Africa’s leading rating agency, with rating coverage in excess of 500 ratings in over 20 African countries.
