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New African credit rating agency to publish 1st rating of SA government Friday
SAR was licensed by the Financial Services Conduct Authority (FSCA) in March after it met all its targets, including the establishment of an ethical board, appointing a management team, and developing a clear unbiased rating methodology.
Africa’s own credit rating agency, the newly established Sovereign Africa Ratings (SAR), based in Midrand, will publish its first credit rating of the South African government on Friday.
Africa’s own credit rating agency, the newly established Sovereign Africa Ratings (SAR), based in Midrand, will publish its first credit rating of the South African government on Friday.
The release of SAR’s first report would coincide with the agency’s official launch at the Waterfall City Courtyard Hotel in Midrand.
Expected to attend the event are Prof Steven Friedman of the Centre for the Study of Democracy, Dr Jonathan Foster-Pedley, director of Henley Business SA, and former deputy public protector advocate Kevin Malunga.
SAR was licensed by the Financial Services Conduct Authority (FSCA) in March after it met all its targets, including the establishment of an ethical board, appointing a management team, and developing a clear unbiased rating methodology.
[Media Release]
FSCA grants Sovereign Africa Ratings (Pty) Ltd credit rating agency licence.
Read full the statement here: https://t.co/6qnINi2ape— FSCA (@FSCA_ZA) March 22, 2022
SAR’s founder and chief executive Dr Sifiso Falala said the event was a major milestone as it marks the beginning of a new era in the ratings industry, for South Africa, for the African continent and the world.
Previously, all African economies have been rated externally and this is a significant change because the people that have been providing retrospective ratings represent the interest of external investors.
“We are an African agency, and we are committed to the development and prosperity of the continent,” Falala said.
The new kid on the block is ready to take on the big three, Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, that have almost monopolised the market for generations.
According to SAR’s chief operating officer, Zwelibanzi Maziya, the purpose of the launch is to introduce and present SAR to Africa and the world.
“We will issue our first credit rating, a sovereign rating on South Africa. This will demonstrate the difference between an independent and a foreign opinion.
“We aim to ensure that Africa and emerging markets have independent, fair, and unbiased opinions of their creditworthiness.
“This event marks the beginning of a new era. The commencement of SAR demonstrates our resolve and courage as it marks the moment Africa moves from the sidelines and enters the field in this industry,” Maziya said.
“The company has been focused on establishing a strong team and efficient internal processes and systems, we have achieved this and will continuously grow.
“Extensive research and engagements with stakeholders in economic analysis, credit, and financial risk fields, as well as academics, are all part of our day-today activities.
“As SAR, we look forward to making positive contributions to the economic and financial research spaces to encourage stability for real growth.”
Asked why industry stakeholders should attend the launch, Maziya said: “It is nice to be part of significant moments in history.
“The first African credit rating agency focusing on emerging markets’ sovereign ratings, licensed, regulated, new entrant into an oligopolistic international industry. It is not an event I’d want to miss.”
The launch, which will start at 1pm, will see the release of a ratings report by SAR chief ratings officer David Mosaka.
– ericn@citizen.co.za
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