Credit Guarantee awarded double A plus rating

The Global Credit Rating Company announces that they have awarded a rating of AA+ (double A plus) to Credit Guarantee Insurance Corporation of Africa Limited (CGIC) for its Domestic ZAR currency claims paying ability.

Their rating is based on CGICs dominant position as the largest credit risk insurer in the South African credit risk insurance industry, commanding an estimated 75-80% market share.

In arriving at this rating, we based our decision on several factors, including the companys extensive credit expertise, supported by its experienced management team, comments Melanie Brown, Managing Director of the Global Credit Rating Co.

We also took cognisance of the companys strong balance sheet as evidenced by its very high solvency margin and strong liquidity position, she says.

According to the Global Credit Rating Companys report issued on 11 September 2006, CGICs key strengths and opportunities are their continued disciplined underwriting approach, with particular emphasis on the close monitoring of risks. The quality of underwriting stems from CGICs highly specialised staff and extensive data base, which facilitates in-depth credit assessment.

In addition, given the current depreciation of the Rand, the outlook for the export portfolio (both growth and profitability) looks promising in the short to medium term.

According to Brown, CGICs strong relationship with Mutual & Federal, rated AAA by GCR, as well as the exceptionally high measured client service standards also served to support the rating.

"CGICs unique relationship with one of the worlds largest international credit insurers, Atradius, which enables the sharing of information through an on-line link, serves to improve the quality of underwriting risks both locally and internationally," concludes Brown.