{"id":12295,"date":"2019-10-11T15:45:07","date_gmt":"2019-10-11T12:45:07","guid":{"rendered":"https:\/\/www.atidi.africa\/moodys-rates-ghana-membership-credit-positive-for-ati-with-potential-to-increase-atis-gross-exposure-to-over-us6-3bn\/"},"modified":"2019-10-11T15:45:07","modified_gmt":"2019-10-11T12:45:07","slug":"moodys-rates-ghana-membership-credit-positive-for-ati-with-potential-to-increase-atis-gross-exposure-to-over-us6-3bn","status":"publish","type":"post","link":"https:\/\/www.atidi.africa\/ja\/moodys-rates-ghana-membership-credit-positive-for-ati-with-potential-to-increase-atis-gross-exposure-to-over-us6-3bn\/","title":{"rendered":"Moody\u2019s rates Ghana membership \u2018credit positive\u2019 for ATI with potential to increase ATI\u2019s Gross Exposure to over US$6.3bn"},"content":{"rendered":"<p>In an Issuer Comment published on 1 October, Moody\u2019s Investors Service rated Ghana\u2019s membership as credit positive to <a href=\"https:\/\/www.ati-aca.org\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a> based on several factors:<\/p>\n<ul>\n<li>Ghana\u2019s membership increases <a href=\"https:\/\/www.ati-aca.org\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a>\u2019s capital base and portfolio diversification;<\/li>\n<li>Adds a key African economy to its membership, strengthening <a href=\"https:\/\/www.ati-aca.org\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a>\u2019s ability to enforce its Preferred Creditor Status across all member states; and<\/li>\n<li>Enhances <a href=\"https:\/\/www.ati-aca.org\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a>\u2019s market position and relevance as a provider of investment protection with a preferred creditor status that is enacted into local law for investors in Africa.<\/li>\n<\/ul>\n<p><strong>NAIROBI, 11 October, 2019<\/strong> \u2013 In a recently released Issuer Comment, Moody\u2019s Investor Service rated Ghana\u2019s membership as \u2018credit positive\u2019 for the African Trade Insurance Agency (\u201cATI\u201d). The membership was facilitated by the German development bank Kreditanstalt fuer Wiederaufbau (\u201cKfW\u201d) with \u20ac16 million ($17.5 million) financing to cover Ghana\u2019s membership, and highlights the German government\u2019s continued support of ATI\u2019s mandate.<\/p>\n<p>Moody\u2019s assessment was based on three factors: The addition of Ghana\u2019s membership is expected to further increase diversification of ATI\u2019s membership and guaranteed portfolio; ATI will benefit from its dejure Preferred Creditor Status (\u201cPCS\u201d) on guarantees it provides to government related counterparties in Ghana; and lastly, Moody\u2019s notes that Ghana\u2019s membership strengthens ATI\u2019s market position and reputation helping it attract more reinsurance support to the region.<\/p>\n<p>The Moody\u2019s Comment emphasized the importance of private reinsurers to ATI\u2019s business, which allows it to transfer a significant amount of the risk it underwrites to reinsurers allowing ATI to \u201csupplement its own balance sheet. At 30 June 2019, ATI had gross guarantee exposures outstanding of approximately $5.9 billion, or 24x its shareholder\u2019s equity ($286.8 million at 30 June 2019), primarily composed of members\u2019 capital and retained earnings) with exposure net of reinsurance at around 3.8x its member capital.\u201d<\/p>\n<p>Moody\u2019s also stated \u201cATI\u2019s strong relationships with reinsurers has enabled it to increase its gross leverage considerably over the past two years, while still maintaining conservative net exposure leverage.\u201d Based on a similar level of leverage in the future, Moody\u2019s estimates that Ghana\u2019s contribution will enable ATI \u201cto increase its gross exposures by approximately $400 million to $6.3 billion\u201d with a further potential to grow its gross exposure even more depending on the structure of reinsurance protection on new transactions.\u201d<\/p>\n<p>The full report can be accessed here:<\/p>\n<p><a href=\"http:\/\/www.ati-aca.org\/wp-content\/uploads\/2019\/10\/Ghana-membership-is-credit-positive-for-ATI.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.ati-aca.org\/wp-content\/uploads\/2019\/10\/Ghana-membership-is-credit-positive-for-ATI.pdf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an Issuer Comment published [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970],"tags":[],"class_list":["post-12295","post","type-post","status-publish","format-standard","hentry","category-970"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/comments?post=12295"}],"version-history":[{"count":0,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12295\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/media?parent=12295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/categories?post=12295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/tags?post=12295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}