{"id":12305,"date":"2019-05-09T09:48:43","date_gmt":"2019-05-09T06:48:43","guid":{"rendered":"https:\/\/www.atidi.africa\/ati-secures-second-investment-grade-rating-a3-stable-from-moodys-adding-to-sps-decade-long-a-stable-rating\/"},"modified":"2019-05-09T09:48:43","modified_gmt":"2019-05-09T06:48:43","slug":"ati-secures-second-investment-grade-rating-a3-stable-from-moodys-adding-to-sps-decade-long-a-stable-rating","status":"publish","type":"post","link":"https:\/\/www.atidi.africa\/ja\/ati-secures-second-investment-grade-rating-a3-stable-from-moodys-adding-to-sps-decade-long-a-stable-rating\/","title":{"rendered":"ATI secures second investment grade rating: \u2018A3\/Stable\u2019 from Moody\u2019s \u2013 adding to S&#038;P\u2019s decade-long \u2018A\/Stable\u2019 rating"},"content":{"rendered":"<ul>\n<li>Securing a rating from Moody\u2019s is part of <a href=\"https:\/\/www.ati-aca.org\/blog\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a>\u2019s medium-term risk management and oversight strategy to obtain objective analyses and ongoing monitoring from two of the world\u2019s most respected and trusted rating agencies: S&amp;P and Moody\u2019s<\/li>\n<li><a href=\"https:\/\/www.ati-aca.org\/blog\/ati-launches-operations-in-ghana-presence-expected-to-boost-industrialization-and-debt-sustainability-efforts\/\">ATI<\/a>\u2019s commitment to transparency is reflected in the publication of this second investment grade rating. ATI believes this will aid its ability to help member states access more competitively-priced and longer-term lending options in international markets<\/li>\n<li>ATI\u2019s robust investment grade credit rating can essentially substitute for the sub-investment grade rating of its member countries. This allows African sovereigns to receive more favourable lending terms thereby decreasing the accumulation of African sovereign debt<\/li>\n<\/ul>\n<p><strong>NAIROBI, 09 May, 2019<\/strong> \u2013 The <a href=\"https:\/\/www.ati-aca.org\/investor-information\/current-members\/\">African Trade Insurance Agency<\/a> (ATI), today announced that is has secured an <a href=\"http:\/\/www.ati-aca.org\/investor-information\/rating\/\">A3\/Stable IFS rating from Moody\u2019s<\/a> based on its strong capitalization and liquidity amongst other criteria. The rating stands alongside S&amp;P\u2019s \u2018A\/Stable\u2019 rating, which ATI has maintained for over a decade. Securing a second rating is part of ATI\u2019s medium-term strategy to further strengthen its governance and oversight mechanisms and to enable ATI to provide better support to its member countries.<\/p>\n<p>The Moody\u2019s rating is another critical layer of ATI\u2019s strategy to provide greater support to its member states. ATI\u2019s investment grade rating can, through the application of ATI\u2019s insurance products, act as a substitute for the often sub-investment grade ratings of its member countries. Amongst other benefits, this allows ATI\u2019s African member countries to borrow for longer and for less, thereby helping them improve the management of their debt profiles.<\/p>\n<p>External ratings often impact the cost of financing for governments and companies. For instance, the benchmark 10-year Government bond issued by countries with high investment grade ratings attract low interest rates of less than 2.50%, whereas single-B rated countries can receive rates above 8%, which adds considerably to a government\u2019s sovereign debt burden.<\/p>\n<p>According to Moody\u2019s report, its A3\/Stable IFS rating of ATI reflects:<\/p>\n<ul>\n<li>ATI\u2019s strong capitalization and liquidity relative to its insured exposures,<\/li>\n<li>High quality and conservative investment portfolio,<\/li>\n<li>Strong relationships with a number of global reinsurers that provide significant risk-bearing capacity,<\/li>\n<li>Good market position and reputation in originating role in facilitating investment into Africa, and<\/li>\n<li>Strong underwriting profitability.<\/li>\n<\/ul>\n<p>The report also mentions the importance of ATI\u2019s Preferred Creditor Status as a moderating influence on ATI\u2019s exposure to defaults.<\/p>\n<p>In addition, Moody\u2019s notes that ATI could qualify for an upgraded rating with an increase in its membership base and participation by larger African countries (such as Ghana and Nigeria, both of which ATI expects will complete membership in 2019) continued strong underwriting performance and ability to recover claims under the PCS; and an enhancement of ATI\u2019s enterprise risk management framework.<\/p>\n<p><strong>QUOTE from George Otieno, CEO of ATI<\/strong><\/p>\n<p><em>\u201cATI recognizes the importance of the oversight that ratings agencies provide and relies on the objective opinions of internationally reputable agencies such as Moody\u2019s to provide a fair and impartial view of ATI\u2019s credit risk. ATI is committed to transparency and external ratings are crucial to ATI\u2019s ability to fulfil its mandate of helping to attract investors to the region. We are proud to count Moody\u2019s as our newest rating agency alongside our decade-long partnership with S&amp;P. This places ATI in a position of even greater credibility and financial strength as we strive to continue to support the evolution of Africa into one of the world\u2019s most attractive and competitive destinations for global investors.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securing a rating from Moody\u2019s [&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-12305","post","type-post","status-publish","format-standard","hentry","category-970"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12305","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=12305"}],"version-history":[{"count":0,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12305\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/media?parent=12305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/categories?post=12305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/tags?post=12305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}