GCR upgrades Bank Windhoek Limited’s long term South African national scale (Rand) issuer rating to A+(ZA); Outlook Stable.
Johannesburg, 29 January 2016 – Global Credit Ratings (“GCR”) has upgraded the long term South African national scale (Rand) issuer rating of Bank Windhoek Limited to A+(ZA) with the outlook accorded as Stable. The national scale ratings
assigned to Bank Windhoek Limited of AA(NA) and A1+(NA) in the long term and short term respectively have been affirmed, Stable outlook. Furthermore, the national scale ratings assigned to Bank Windhoek Holdings Limited of AA(NA) and A1+(NA)
in the long term and short term respectively have also been affirmed, Stable outlook.
The upgrade of Bank Windhoek Limited’s South African national scale (Rand) issuer rating reflects a recalibration of the relative sovereign ratings of South Africa and Namibia. This recalibration follows the recent revision of the Republic of South Africa’s international scale local currency Issuer Default Rating (from ‘BBB+’ with a Negative outlook to ‘BBB’ with a Stable outlook), with the South African country ceiling simultaneously being lowered from ‘A-’ to ‘BBB’. Namibia's long-term foreign and local currency Issuer Default Ratings have recently been affirmed at ‘BBB-’ and ‘BBB’, respectively, with Stable outlooks, while the Namibian country ceiling was downgraded to ‘BBB’ from ‘A’-.
The rating action taken does not reflect a change in key rating factors applicable to the credit profiles of Bank Windhoek Limited or Bank Windhoek Holdings Limited, barring the impact of sovereign risk. Rather, the ratings reflect changes in the relative sovereign risk of the South African and Namibian governments, as signalled by recent sovereign ratings actions.
GCR will continue to monitor developments related to the sovereigns and will respond to any impact on criteria and ratings.