Sovereign Africa Rating is a new entrant into the sovereign ratings industry and competes with S&P Global Ratings, Moody’s and Fitch Group.
A new entrant into the highly competitive sovereign ratings business, Sovereign Africa Rating agency has officially launched in Midrand, north of Johannesburg, South Africa. It competes with the likes of the ‘big three’ credit rating agencies, namely S&P Global Ratings (S&P), Moody’s and Fitch Group.
Sovereign Africa Rating approved by FSCA
In its first-ever rating report, SAR has placed South Africa at investment grade with a stable outlook. This follows the Financial Sector Conduct Authority (FSCA) approving Sovereign Africa Rating’s license application to operate as a credit rating agency from 8 March 2022. The approval follows the terms of Section 5 of the Credit Rating Services Act, 2012 (CRS Act). The company is based in Centurion, South Africa and is authorized to issue sovereign ratings only.
Sovereign credit ratings are a credit rating where the entity rated is a state or a provincial or local authority of the state; or the issuer of the debt or financial obligation, debt security; or other financial instrument is a state, or a provincial or a local authority of the state; or a special purpose vehicle of a state or a provincial or a local authority of a state.
First COO: Zwelibanzi Maziya
In August, Sovereign Africa Rating appointed Zwelibanzi Maziya as its first COO. Founder Dr. Sifiso Falala welcomed the new appointment. He stressed that Africa needed to be well represented in measuring the credit worthiness of countries on the continent. This function could not be delegated exclusively to long established multinationals.
“The launch of an independent African agency committed to exhaustive ratings could not have come at a better time. This is a milestone we celebrate with the more than 1.3 billion Africans and others in emerging markets who have been waiting for many years for information that can inspire transformation, economic growth and self-reliance,” concluded Dr. Falala.