Corporate & Public Sector Debt Ratings

GCR’s Criteria For Rating Corporate Entities

Corporate & Public Sector Debt Ratings

Contact Details

Sector Head: Eyal Shevel
T: +27 11 784 1771
E: .(JavaScript must be enabled to view this email address)

Overview

GCR’s rating approach employs analytical techniques that incorporate quantitative and qualitative factors. Our ratings reflect an evaluation of the organisation’s current financial position, as well as how the financial position may change in the future. In addition, our analysis focuses on a range of administrative, economic and operational factors. GCR examines the ability of the organisation to meet its obligations under reasonable and stressful scenarios. Although this methodology focuses on rating general obligations, it is also relevant to specific debt issues. GCR’s objective is to assign ratings that are applicable throughout the various stages of a business cycle.

Methodologies

Please click here for a Glossary of Terms
                               
Global Master Criteria for Rating Corporate Entities, updated February 2017
GCR’s corporate credit ratings are a measure of the ability of an Issuer to honour its financial obligations, relative to other Issuers. Corporate credit quality is assessed over both the short term and the long term, with a separate short term and long term rating accorded. Download

                               
Global Criteria for Rating Property Funds, updated February 2017
GCR accords ratings to property funds utilising the same rating scale and definitions that are applied to other corporate Issuers. Thus, property fund credit ratings are a measure of the ability of an Issuer to honour its financial obligations to senior unsecured creditors, relative to other Issuers within a given country.Download


Global Master Criteria for Rating Public Entities, updated February 2017
GCR’s public entity1 credit ratings are a measure of an entity’s relative ability to honour its financial obligations. A public entity’s ability to honour payments is assessed over both the short term and the long term, with separate short term and long term ratings accorded.Download


Global Criteria for Rating Water Utilities, released May 2017
The criteria outlined in this document are intended to illustrate the rating guidelines that GCR follows when according a rating to a Water Utility. Water Utilities (and utility companies in general) tend to exhibit characteristics of both private and public sector institutions.Download


Global Criteria for Rating Power Utilities, released October 2017
The criteria is intended to illustrate the rating guidelines that GCR follows when according ratings to a Power Utility. The provision of electricity, while not considered crucial to sustaining life (unlike water services), is a critical component in enhancing the quality of life and supporting economic growth. In this respect, the government has an important role to play in ensuring sufficient electricity is generated and provided to users. Thus, Power Utilities tend to exhibit characteristics of both private and public sector institutions. On the one hand, Power Utilities are usually partially or wholly owned by the National Government of a particular country, or fall under some regional jurisdiction. Even where the entity may have been privatised, the provision of electricity and the pricing thereof tends to be highly regulated. On the other hand, Power Utilities tend to operate as corporatised legal entities, having a Board of Directors and management structure similar to that of private sector entities, as well as a mandate to generate profits.Download

Articles of Interest

RETAIL PROPERTY FUND SECTOR DESPITE WEAK OPERATING ENVIRONMENT, APRIL 2014
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GROWING DEMAND FOR SERVICES IN MUNICIPAL SECTOR BUT FUNDING REMAINS A CHALLENGE, MARCH 2014.
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SA’S SMALL CORPORATES OPTING FOR BOND ISSUES IN 2013.
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PROPERTY GROUPS LOOKING TOWARDS RURAL AREAS FOR GROWTH.
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SA CONSTRUCTION SECTOR MUST LOOK BEYOND BORDERS FOR GROWTH.
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