Moody's to Acquire Majority Stake in GCR Ratings, Expanding Presence in Africa
Moody’s Corporation (NYSE: MCO) (www.Moodys.com) announced today that it has agreed to acquire a majority (51%) stake in Global Credit Rating Company Limited (GCR). GCR is a leading credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.
“GCR’s ratings play a significant role in the growth of Africa’s financial markets by providing critical insights into credit across a range of economies and sectors,” said Rob Fauber, President & Chief Executive Officer of Moody’s. “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.”
“This is an important milestone in the history of GCR,” said Marc Joffe, Chief Executive Officer 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 is committed to economic transformation in South Africa and sees empowerment as an important part of the future success of its investment in GCR. To this end, Moody’s is engaging with a South Africa-based empowerment partner who will provide local strategic support through substantial equity participation and representation on the GCR South Africa board.
Moody’s and GCR are also committed to playing a positive societal role. In South Africa, Moody’s and GCR intend to advance corporate social responsibility initiatives, including social enterprises that provide education and support to female-owned businesses and entrepreneurs.
Following the transaction, GCR 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.
Distributed by APO Group on behalf of Moody’s Corporation Investor Relations.
About Moody’s Corporation:
Moody’s (NYSE: MCO) is a global integrated risk assessment firm that empowers organizations to make better decisions. Its data, analytical solutions, and insights help decision-makers identify opportunities and manage the risks of doing business with others. We believe that greater transparency, more informed decisions, and fair access to information open the door to shared progress. With over 13,000 employees in more than 40 countries, Moody’s combines international presence with local expertise and over a century of experience in financial markets. Learn more at moodys.com/about.
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