GCR Ratings (GCR) has withdrawn the national scale long- and short-term issuer credit ratings of Access Bank (South Africa) Limited due to a lack of sufficient information from the bank.
The decision, made without a review, means that GCR no longer supports any previously assigned ratings.
The last review of Access Bank South Africa’s credit rating was conducted in June 2024. However, GCR stated that without adequate disclosures from the bank, it could not sustain the ratings in line with its analytical standards.
Since Access Holdings Plc acquired Access Bank South Africa in 2021, it has injected 1.4 billion rand (N115 billion) into the subsidiary. Despite this, the bank has continued to report financial losses, including in 2023, with further losses projected for 2024 results.
GCR also warned that Access Bank South Africa’s capitalization is expected to deteriorate in the short to medium term. As a result, the bank may need to raise additional capital either from shareholders or the market.
Currently, Access Bank South Africa ranks 24th out of 30 regulated banks in the country, holding a market share of less than 0.1 percent across assets, loans, and deposits. In an effort to strengthen its presence, Access Bank Plc has made a 2.8 billion rand ($159 million) bid to acquire Bidvest Bank Holdings Ltd., a move aimed at expanding its footprint in South Africa.
The withdrawal of Access Bank South Africa’s credit ratings does not imply an inability to meet debt obligations or a decline in financial health. Instead, it highlights the bank’s failure to provide critical information required for an accurate credit assessment.
Meanwhile, Guaranty Trust Holding Company (GTCO) Group CEO, Segun Agbaje, has expressed skepticism about expanding into South Africa. Speaking at an investor presentation at the Nigerian Exchange (NGX), Agbaje dismissed the idea, stating that South Africa is a mature market with limited growth potential compared to economies like Nigeria.
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