in

SA agency withdraws Chase Bank credit rating

The Global Credit Ratings (GCR) has terminated rating for Chase Bank months after its collapse and issuance of Sh4.8 billion first tranche of a Sh10 billion bond.

The rating agency said Chase had failed to provide sufficient information to enable it do appropriate evaluation.

GCR is the largest rating agency in Africa for financial, insurance, corporate and public sector players, accounting for over 60 per cent of all ratings in the continent. Ratings are critical in debt issuance.

“The respective national scale long- and short-term ratings of CCC (KE) and C (KE) previously accorded to Chase Bank Kenya Ltd (“Chase”, “the bank”) have been withdrawn,” GCR said in a brief.

“Once the bank is in a position to provide GCR with the requisite information, and upon the bank’s request, full analysis and ratings coverage will be resumed,” said GCR.

The best possible ratings assigned by GCR is “AAA” in each country.

Chase was placed under receivership in April last year following a run on deposits after reports of liquidity problems were highlighted.

It was re-opened on April 27, last year, under the management of KCB Group #ticker:KCB and allowed to do all transactions including foreign exchanges and issuing loans.

A fortnight ago, Central Bank of Kenya (CBK) invited bids for a majority stake from local and foreign financial institutions.

The selected investor would have to inject capital to raise the lender’s equity under a restructuring being pursued by the Central Bank.

Former Nakumatt boss Thiagarajan Ramamurthy takes over Bidco’s hot seat

Mastermind to benefit most from cigarettes tax cut