GCR Upgrades Centum’s Credit Rating

Nairobi July 31^st 2014… Global Credit Ratings (GCR) has upgraded Centum Investment Company’s credit rating to A from A- on long term rating and to A1 from A1- on short term rating. They further accorded the company a Stable outlook. This marks the second consecutive credit rating improvement for the Company since its initial credit rating in 2012 following the issuance Company’s debut corporate bond of Ksh. 4.2 Billion.

Commenting on the development, Mr. James Mworia, Centum Group Chief Executive Officer, said, “This improvement in our credit rating is a reflection of Centum’s financial stability as well as its cash generating ability that has enabled the Company to meet its debt obligations while still attaining its strategic objectives. The upgrade also supports our belief that we are progressing well on achieving our long-term vision of becoming Africa’s foremost investment channel and an investment grade rating for the company would affirm the attainment of this vision.”

Mworia went on to comment that “The rating upgrade further confirms that Centum’s investments are well founded allowing the company to achieve market beating returns while still maintain very strict criteria on investment evaluation as well as employing prudent business and financial management. This includes monitoring of the proportion of cash generating assets to long-term assets to ensure that the Group can meet its investment, operating, and debt-service obligations.”

In their ratings report, GCR noted that Centum’s asset pool was strongly cash generative, with the Group reporting significant interest and dividend income from its private equity and marketable securities portfolios. Such recurring cash earnings provide strong support to debt serviceability. Centum’s cash flows are also bolstered by the trading of investments, which has historically resulted in large realised gains and provided liquidity for new investments.

A credit rating estimates the creditworthiness of an individual, corporation, government or even a country. It is an evaluation made by a credit rating agency of a borrower’s overall credit history and the borrower’s ability to repay debt. The upgrade in the Centum’s credit rating therefore implies an improvement in the Company’s financial strength as well as gives a positive indication of the company’s future performance.

Full press-release relating to Centum’s ratings upgrade is available on GCR’s web-site:

https://globalratings.net/news/article/gcr-upgrades-centum-investment-company-limiteds-rating-to-ake-outlook-stabl

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For more information contact Fred Murimi, f.murimi@centum.co.ke