GCR Ratings (GCR) has upgraded the Namibian national scale long-term issuer ratings for Letshego Holdings Namibia, Letshego Bank Namibia, and Letshego Micro Financial Services Namibia to A+(NA) from A(NA).
The short-term issuer ratings of A1(NA) have been affirmed, and the outlook has been revised to Stable.
Karl-Stefan Altmann, Chief Financial Officer at Letshego Namibia, commented: “This upgrade reflects Letshego’s enhanced competitive position, solid asset quality, strong capitalisation, and commitment to responsible lending.”
The key drivers of the upgrade include the Social Bond Listing of Letshego.
Letshego’s listing of the first social bond on the Namibian Stock Exchange raised N$322 million, with N$260 million issued in three-year senior unsecured notes.
The proceeds will support financial inclusion for underserved communities by funding sectors such as affordable housing, healthcare, and education.
The company’s strong financial performance also contributed to the upgrade.
“The Group’s asset quality remains robust, with non-performing loans at 5.8% (below the industry average of 6%) and low credit losses at 0.3%,” said Altmann.
“Capitalisation is strong, with a GCR capital ratio of 42.0% as of December 2023.”
Altmann also pointed to the diversified growth and resilience of the company as another driver for the positive upgrade.
“Letshego continues to diversify its funding base while maintaining a resilient financial profile. Liquidity remains adequate, with liquid assets covering short-term wholesale funding at 1.3x as of December 2023.
“Letshego Holdings Namibia is well-positioned to sustain its growth trajectory and advance financial inclusion and economic development across Namibia.”
In the photo: Karl-Stefan Altmann, Chief Financial Officer at Letshego Namibia.
