Ratings Releases

Latest Credit Ratings by CRA:
Zanaco Bank Plc
True to its reputation as a market leader, the latest credit rating for the Zambia National Commercial Bank (Zanaco) Plc attests to its strong standing. Zanaco maintained its AA long term rating, effective June 2018 for a one year validity period. The rating was mainly driven by Zanaco's strong franchise value in the Zambian market and strong shareholder support. Zanaco's short term rating was also maintained at STR-1, signifying the highest possible score with regards ability to meet short term obligations as they fall due.

FNB Zambia
First National Bank (FNB) Zambia has maintained its A+ credit rating, effective June 2018 for a one year validity period. The rating acknowledges FNB's sustained growth in the Zambian economy over the past several years and strong corporate governance, including robust risk management systems. In addition, the bank enjoys strong shareholder support from its principal shrehaolders, the First Rand Group of South Africa. FNB's short term rating was also maintained at STR-1, signifying the highest possible score with regards ability to meet short term obligations as they fall due.

Solicited Credit Ratings issued by CRA:
The following clients have been rated annually in the period since 2015:

Zanaco Bank PLC

First National Bank Zambia

Cavmont Bank

Indo-Zambia Bank

Real Estate Investments Zambia PLC (REIZ)

Currrently, about to engage Atlas Mara Bank.

Unsolicited Credit Ratings issued by CRA:
In accordance with industry practice, CRA conducts unsolicited ratings of financial market participans. To date, CRA maintains ratings of all major commercial banks, insurance companies and listed companies on the Lusaka Stock Exchange.
Rating reports are kept by CRA and can be presented upon request.

1st Credit Rating by CRA - Zanaco rated AA:
The Board and Management of CRA announced the AA long term credit rating for Zambia National Commercial Bank Plc (Zanaco) on 14th October 2015. Following a rigorous credit rating assignment, CRA arrived at the rating which was valid from 1 September 2015 to 31 August 2016. The release of the rating was held at a colourful official launch ceremony for CRA at the Pamodzi Hotel, Lusaka. The ceremony was attended by a cross-section of the business community in Zambia, industry regulators and senior Government officials.

From left to right: Zanaco CEO Mr. Bruce Dick, Zanaco Chairperson Ms. Charity Lumpa, Zanaco Board Member Mr. Hastings Mtine, Securities and Exchange Commission Chairman Mr. Chintu Mulendema and CRA CEO Mr. Wilson Kalumba.

Commending Zanaco on the rating, Finance Minister Alexander Chikwanda in a speech read for him by Permanent Secretary in charge of budget and economic affairs, Pamela Kabamba, said the advent of credit ratings in Zambia holds a lot of promise for the country. “As Government, we look forward to the time credit ratings become a way of life in all three segments of the financial sector – capital markets regulated by the Securities and Exchange Commission (SEC), banks regulated by the Bank of Zambia (BOZ), and Pensions and Insurance companies regulated by the Pensions and Insurance Authority (PIA). Ratings have the potential to improve market efficiency and financial stability in all three segments of the financial sector. I recognize Zanaco as the first bank to be rated in Zambia. This move is a strong demonstration of market leadership – Zanaco is yet again ahead of its class!”, he said.
Applauding Zanaco on the rating, Securities and Exchange Commission Chairman, Mr Chintu Mulendema said the subject matter of improving governance and investor protection in the Zambian capital market has been at the core of the Commission’s vision. “Credit rating is an important source of information for capital markets investors and therefore credit rating agencies have an important role in promoting good governance and investor protection in our markets”, he said. Mr Mulendema applauded Zanaco for being rated by an indigenous entity and being market leaders in fostering the cultural change that recognizes local business entities.
Speaking at the event, CRA Chief Executive Officer Mr. Wilson Kalumba explained the role of CRA as that of addressing the gap that has long existed in the Zambian economy – the measurement of credit risk, as well as providing independent and credible market information that can guide investment and credit decisions. He further explained that in rating the Bank, the Agency considered the key rating factors such as the Bank’s market position including its franchise value, economic environment, regulatory environment, corporate governance, risk management and control, and financial profile. Mr Kalumba commended the bank for being the first bank in Zambia to be rated.
Commenting on the rating, Zanaco Managing Director, Mr Bruce Dick said the rating marks an important milestone in the history of the Bank and the banking industry as a whole in Zambia. He further said that the Board and Management were proud of the rating because it is a positive indication and reaffirmation of what the Bank stands for. He also mentioned that the rating solidifies the Bank’s commitment to making a lasting contribution to the growth of the Zambian economy. “The rating is a proud moment for us because of many reasons. It does not only signify our leadership role in innovation and trendsetting in the banking industry in Zambia, it also shows that we want to make a meaningful contribution to the wellbeing of the economy of Zambia as a strong and reliable institution. The Zambian Government has already shown leadership by obtaining sovereign ratings in 2010 from the big three rating agencies – Standard and Poors and Fitch (solicited ratings), and Moodys (unsolicited rating) and we are setting the trend for other corporate organisations. More importantly, it is a proud moment for us because we are cementing our Visions and Mission of banking bankable unbanked Zambians in rural and urban Zambia. The benefits of our rating that we will pass on to our customers are enormous and this is exciting,” he said.

Credit Outlook

Industry Sector Analysis

Industry Sector Analyses are prepared by CRA and are available under the following broad categories:

• Financial
• Agriculture
• Tourism
• Manufacturing
• Infrastructure
• Energy
• Mining

Some sub-sector analyses are readily available, while others can be prepared by CRA on request. Contact us at info@premier-ratings.com

The sector analysis reports contain useful information on industry statistics, industry trends, industry risk assessments, industry life cycle, major participants, profitability margins, competitive dynamics and business/credit outlook.

A major source of primary data is the sector profiles produced by the Zambia Development Agency and Ministry of Commerce. The latest sector profiles are available here:

Agriculture          Tourism             Manufacturing          Infrastructure           Energy               Mining

Published Articles

Major publications include those by Credit Rating Agency staff and consultants.

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