The country is currently rated one notch above junk at Fitch rating agency, and two notches above junk at Moody’s. The government announced a wage assistance scheme that will ensure all private sector employees received their full salary for the month of March 2020, and could use additional spending approved in the budget if necessary to increase support to the economy. However, leakages of foreign exchange from tourist receipts are high, meaning a severe but temporary decline in tourism receipts will be offset by lower tourism-related imports, further cushioned by lower oil prices deflating the import bill. Symbol means a negative outlook. Absa Bank (Mauritius) Limited has been assigned Moody's Baa3 deposit rating on 26 February 2020. 10 Years vs 2 Years bond spread is 164.2 bp. Moody's Investors Service, has downgraded the Government of Mauritius's long-term foreign and local currency issuer rating to Baa2 from Baa1 and maintained the negative outlook. It confirms what the…, Digital is at the heart of the transformation strategy of Absa Mauritius.…, La Bank One a le plaisir d’annoncer qu’elle a récemment accueilli Eric…, Sustainability has been a buzzword in recent years, but what does the…, Le groupe AXYS vient tout juste de lancer AXIOM Africa Equity Fund,…, Bonnie Qiu has been appointed as the Chief Executive Officer, Hongkong and…. Central Bank Rate is 1.85% (last modification in April 2020). Moody’s views Mauritius’s credit profile as resilient to a severe, but temporary disruption, benefiting from a large stock of international reserves, a diversified economy with multiple drivers of growth, and a large domestic financial system which limits its reliance on external borrowing. The combined credit effects of these developments are unprecedented. BDO : Rebuilding Mauritius, The New Future? Absa Bank (Mauritius) Limited has been assigned Moody's Baa3 deposit rating. Credit ratings are professional opinions about an entity`s creditworthiness with respect to its current or future obligations. Moody’s believes that the … The BBB- (ZW) rating and Rating Watch was extended into 2012, following which the bank’s long term rating was downgraded further, to BB+ (ZW) in May 2013 on account of a deterioration in liquidity, capitalisation and asset quality. A large stock of international reserves limit the immediate credit implications of a larger current account deficit. Moreover, the risks of a larger spillover from tourism to the rest of the economy — beyond those captured in the indirect contribution of tourism to GDP — point to further downside risks to Moody’s expectations that Mauritius will avoid an outright contraction in real GDP in 2020 and return to growth above 3% in 2021. AfrAsia’s ratings have been on a downward trajectory since 2011, when the bank’s long term rating was downgraded to BBB-(ZW) and placed on Rating Watch. Rating Action: Moody's takes rating actions on three banks in Mauritius following the downgrade of Mauritius' government ratingsGlobal Credit Research - … The coronavirus and slower global growth could also reduce foreign direct investment into Mauritius, weighing on its external accounts and potentially result in a drawdown on international reserves. He is a chartered quantity surveyor, project manager and an accredited partnership broker. Our dedicated team looks forward to advising you on our suitable customized and structured solutions to meet your specific hedging and investment requirements on different asset classes. We provide you with the latest breaking news and videos straight from the finance industry. Moody's Investors Service has today changed the outlook on the Government of Mauritius's rating to negative from stable. . At the same time, Global Credit Ratings has withdrawn the ratings assigned to AfrAsia Bank Zimbabwe Limited at the client’s … Get the latest news, straight to your inbox. Also, Gordan’s firing by Zuma was perceived as another setback to an economy that grew just 0.5 percent last year and has an unemployment rate of nearly 27 percent.The dismissal of Gordhan later led to a rating downgrade to “junk status” by credit ratings agency Standard & Poor’s on Monday .The agency stated that political and institutional uncertainty after Gordhan’s firing has placed South Africa’s fiscal and growth outcomes at risk. REPORTS. It was down almost 13 % to 13.94 against the U.S dollar on Tuesday, following Gordhan’s dismissal and after the country’s credit rating downgrade by Standard & Poor’s. After tourist arrivals increased by 4.7% in January and February, Moody’s expects a near complete halt in tourist arrivals in the second quarter of 2020, followed by a gradual recovery in the second half of the year, resulting in total annual arrivals contracting by at least 25-30% in 2020 relative to the previous year. The remaining five banks namely ABC Banking Corporation, Bank of Mascarene Bramer Banking Corporation Mauritius Post and Cooperative Bank and SBI (Mauritius) are right behind with a score of "3 +" or "3 -" (fair). Tags EconomyMauritiusInvestment. 18 March 2020. Rating agency Moody’s has recently indicated that it is reviewing the Baa2 credit rating it assigned to South Africa and the process could take one to three months. Below you can see an overview of the Bank`s … 17 March 2020. Mauritius’s local currency bond and deposit ceilings remain unchanged at A1. Johannesburg, 18 Feb 2015— Global Credit Ratings has affirmed the national scale long term and short term rating assigned to AfrAsia Bank Zimbabwe Limited of LD (ZW). The outlooks on MCB’s and SBM’s deposit ratings are negative and the outlook on Absa Mauritius’ deposit rating is stable ». Timetable of Mauritius credit ratings by S&P, Moody's, Fitch and DBRS agencies. Mauritius’s high government debt and interest burdens are a key credit constraint relative to Baa-rated peers, limiting to a certain extent its ability to deploy counter-cyclical fiscal policy to buffer the economy in the face of shocks such as the current situation. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. Moody's A: Obligations rated 'A' are considered upper-medium grade and are subject to low credit risk. The negative outlook reflects risks to Mauritius's economic and fiscal metrics as a result of the coronavirus outbreak. AfrAsia Bank uses cookies to improve your user experience. The A2/P-2 country ceiling for foreign currency debt and Baa1/P-2 ceiling for foreign currency bank deposits also remain unchanged. Yogesh Gokool, Senior Executive – Head Global Business at AfrAsia Bank, tells Investor’s Mag that the…, Penresa, in partnership with Forbes Africa, will host its next webinar on Wednesday 12 August to…, The Budget 2020/21 was billed as the most important budget since independence. A longer period of lower growth would dampen income growth and revenue collection, leading to a further widening of fiscal deficits and aggravating a debt and interest burden already above Baa1 peers. Moody’s Investors Service has changed the outlook on the Government of Mauritius’s rating to negative from stable. Although Moody’s expects the government’s fiscal measures, along with central bank support, will prevent a more severe impact on the broader economy, increased government spending along with lower nominal growth and lower tax revenue will result in an increase in the size of the fiscal deficit and weigh on debt metrics. Mauritius Commercial Bank Limited. By continuing on this website without changing your settings, you will be providing us with your consent to receive all cookies. Concurrently, Moody’s has affirmed the Baa1 long-term issuer rating. Under such a scenario, the weakening in fiscal strength may no longer be consistent with a Baa1 rating. Real GDP growth has averaged 3.8% over the past ten years, above the Baa-rated median of 3.1%, while exhibiting significantly lower volatility. AfrAsia Bank (LEI 549300N8BDWE3MP97605, Swift AFBLMUMUXXX). The Bank acts as custodian for AfrAsia Capital Management Ltd. FX-Treasury@afrasiabank.com. The international rating agency Moody’s Investors Service maintained its sovereign rating of ‘Baa1’ (stable) for Mauritius, following its latest country assessment released in mid-2014. Bank of Mauritius Template on Fees, Charges and Commissions, MBA Communiqué - Le "Skimming" - Clonage des Cartes Bancaires & ATMs, MBA Code of Ethics and of Banking Practice, MBA Communiqué - Fraudulent Fund Transfers. Country risk ratings issued by external credit agencies (S&P, Moody’s or BMI research) are also used by the Bank to evaluate the risk exposure of each country. Limassol, April 03, 2020 -- Moody's Investors Service, ("Moody's") has today affirmed all ratings and assessments of the three rated Mauritian banks, namely: Mauritius Commercial Bank Limited ("MCB"), SBM Bank (Mauritius) Ltd. ("SBM"), and Absa Bank (Mauritius) Limited ("Absa Mauritius"). He was admired for standing up against the corruption prevailing in Zuma’s government. View by Class. Tourism’s direct contribution to GDP is estimated at 8.2% of GDP in 2019 and, when including the indirect contribution from other industries such as transport and accommodation and food service, it accounts for 23.8% of GDP, 22% of employment, and 35% of total exports. Investor’s Mag is your financial & business news website. “Try, try, try, and keep on trying is the rule that must be followed to become an expert in anything." Additionally, Moody’s expects the government’s policy response, via fiscal and monetary policy stimulus, will be targeted and short-term in nature, without permanently affecting the government’s ability to maintain a stable debt burden. Mauritius Commercial Bank Limited | Reports | Moody's. This page includes the government debt credit rating for Mauritania as reported by major credit rating agencies. Although Mauritius’s debt and interest burden will remain above those of similarly-rated peers, risks are contained due to the low share of foreign-currency denominated debt and relatively large share of long-term domestic debt. Ratings & Assessments. Issuer Outlook. Moody’s upgrades MCB Ltd’s deposit rating to Baa2 26 Jul 2019 At its latest Rating Committee, Moody’s Investors Service (“Moody’s”) has upgraded the credit rating of MCB Ltd (“MCB” or “the Bank”), with the long-term deposit rating improving from Baa3 to Baa2. Fitch expects Mauritius to have a relatively weak economic recovery in 2021, with real GDP growth predicted at 4.5% in 2021 and 6.5% in 2022. The magnitude of the downturn in growth is uncertain, and depends in part on the ability of the authorities, and the global community to contain the economic fallout from the coronavirus shock. A bottom-up approach: analysis of the country risk pertaining in each cross-border credit file, placement, financial product; 2. Absa Bank (Mauritius) Limited’s financial results for the year ending December 2019. Moody's downgrades Tunisia's ratings to B3, maintains negative outlook ; Moody's affirms the Ba1 long-term deposit ratings of four Moroccan banks ; Central Bank of Mauritius maintains rate, raises 2021 growth forecast ; Moody's changes Morocco's outlook to negative, affirms Ba1 rating ; Dangote Cement gets Global Credit Rating of AA+, A1+ Tables with accounting and financial reporting. Robust economic growth has supported an increase in income per capita, signaling a higher capacity to absorb economic or fiscal shocks. Gordhan’s replacement by Home Affairs Minister Malusi Gigaba did little to calm the markets last week, given that Pravin Gordhan was widely seen as a competent Minister of Finance for Africa’s biggest economies. Normal Convexity in Long-Term vs Short-Term Maturities. Meanwhile, all the big banks in South Africa came out on Reuters, mentioning they are well positioned to withstand the impact of sovereigns credit downgrades.On the financial markets, the South African Rand hysteria started early on 27th of March, when Zuma ordered former finance minister Pravin Gordhan to return home immediately from an investor roadshow abroad. He is equally an accredited professional/assessor in several green building/sustainable communities rating systems. However, according to this report, ranking twenty banks, fifteen received notes "2 +" or "2 -", which means "good". Mauritius’s high and stable growth rates, which have supported rising wealth levels, along with strong institutional framework underpin the rationale for affirming the Baa1 rating. Information about the issuer. AfrAsia Bank, located in Mauritius offers tailor-made products and services for Private, Corporate and Global Business Ban… Yogesh Gokool, Senior Executive – Head Global Business at AfrAsia, Penresa, in partnership with Forbes Africa, will host its next, Bertrand Casteres, CEO, MUA: “This pandemic is generating unprecedented circumstances, causing significant concerns in financial markets across the world”. The negative outlook reflects risks to Mauritius’s economic and fiscal metrics as a result of the coronavirus outbreak. Moody’s expects growth in Mauritius to slow as a result of the coronavirus-induced global growth slowdown, mainly as a result of lower tourist arrivals and earnings. Read more. “Mauritius remains the best gateway for cross-border investments into Africa.” Yogesh Gokool, Senior Executive – Head Global Business at AfrAsia Bank, AfrAsia Bank partners with Forbes Africa for an insightful webinar: Mauritius as an investment destination amidst the challenges. Port Louis, Mauritius (PANA) – Mauritius Bankers Association Limited (MBA) on Saturday said it has taken cognizance of the decision by Moody’s Investors Service (Moody’s) to downgrade the Government of Mauritius rating from Baa1 to Baa2 on 4 March 2021. The Mauritius 10Y Government Bond has a 2.195% yield. Rating agency Moody’s has recently indicated that it is reviewing the Baa2 credit rating it assigned to South Africa and the process could take one to three months. The country’s strong institutional framework and prudent policymaking have supported not only high growth rates but also increase the economy’s resiliency to shocks. Absa Bank (Mauritius) Limited is the first entity, within Absa Group Limited and outside of South Africa, to be independently rated by an external rating agency. Please feel free to email us or give us a call. Symbol means a positive outlook assigned by the rating agency. However, in the coming days, the USD/ZAR could be dragged down to 13.25/30 ahead of U.S non-farm payroll data on Friday before heading north again.CONTACT USInterested in Forex ,Bonds ,and structured products?Please feel free to email us or give us a call. Feb 18, 2015. View by Debt. Sandeep Mohapatra, Head of Digital Transformation, Absa Bank Mauritius: “Abby truly provides a wow customer experience”, Bank One accueille son nouveau Chief Operating Officer, Eric Hautefeuille, Nicolas Goldstein, Co-Fondateur, CEO, Talenteum: « le mindset aussi bien des employés, que des employeurs, va changer », Sanjeeve Jhurry, Sustainability Manager, Bank One – Banking on Sustainability, AXIOM Africa Equity Fund : Investir dans l’avenir de l’Afrique, HSBC appoints Bonnie Qiu as new Chief Executive Officer in Mauritius. As part of the same rating action, Moody’s has affirmed the ratings of SBM Bank (Mauritius) Ltd. (« SBM »). Call: Tel: +230 402 1000 (24/7 Contact Centre) Email: customer.contact@absa.africa. Absa Bank (Mauritius) Limited -- Moody's announces completion of a periodic review of ratings of Absa Group Limited. AfrAsia Bank Limited is licensed and regulated by the Bank of Mauritius and the Financial Services Commission. Interested in Forex ,Bonds ,and structured products? Moody’s Investors Service has changed the outlook on the Government of Mauritius’s rating to negative from stable. These ceilings act as a cap on the ratings that can be assigned to the obligations of other entities domiciled in the country. MCB’s capacity for respecting financial commitments is considered adequate but adverse business or economic conditions are more likely to affect this capacity. Moody’s rating and Mauritius’ regional leadership role The international rating agency Moody’s Investors Service maintained its sovereign rating of ‘Baa1’ (stable) for Mauritius, following its latest country assessment released in mid-2014. April 3, 2020. in Headlines. Our dedicated team looks forward to advising you on our suitable customized and structured solutions to meet your specific hedging and investment requirements on different asset classes. Need more help? Standard Bank is a licensed financial services provider in terms of the Financial Advisory and Intermediary Services Act and a registered credit provider in terms of the National Credit Act, registration number NCRCP15 For Mauritius, the shock mainly transmits through the sharp decline and potentially prolonged slump in the tourism industry, which represents a relatively sizable proportion of gross value added in the economy as well as a source of government revenue and export earnings. In its latest report, Moody’s Investors Service has revised downwards Mauritius long term foreign and local currency issuer rating from Baa1 to Baa2, thus maintaining a negative outlook. Baa: Obligations rated 'Baa' are judged to be medium grade and subject to moderate credit risk and as such may possess certain speculative characteristics. Rating Action: Moody's upgrades Mauritius Commercial Bank's deposit ratings to Baa2 25 Jul 2019 Limassol, July 25, 2019 -- Moody's Investors Service ("Moody's") has today upgraded Mauritius Commercial Bank Limited (MCB)'s baseline credit assessment (BCA) … Moody’s decision to affirm the Baa1 rating takes into account Mauritius’s strong governance and policy effectiveness, which have supported strong economic growth and provides a degree of resilience to economic shocks. A downgrade that reflects weakness in fiscal and economic strength, triggered by shock on account of the coronavirus pandemic. For more information, please visit our privacy policy and cookie policy. Organization List. Earnings from the tourism sector are an important source of export earnings, and pose an additional downside risk through the balance of payments channel. The latter has deposits in Kingdom Bank Limited amounting to USD 1.2M (2018: USD 1.2M and 2017: USD 1.2M). The Bank utilises two other types of approach: 1. However, the Rand recovered some of its losses late on Tuesday on hopes President Zuma may be forced to step down on mounting calls from unions, religious leaders, civil society and the opposition, following the reshuffling of his cabinet and his change of finance ministers that triggered the credit rating downgrade.Technical outlook - Sentiment towards the Rand has now turned negative.The Rand has turned bearish since last week following the recent turmoil in South Africa. The Mauritian economy has demonstrated remarkably steady, and relatively high growth rates over the past decade, benefiting from a well-diversified economic structure despite its small size. Fitch Ratings has affirmed MCB Long-Term Issuer Default Rating (IDR) at ‘BBB-‘ with a negative outlook. The country is currently rated one notch above junk at Fitch rating agency, and two notches above junk at Moody’s. - W. Clement Stone, South Africa witnessed a political and financial crisis after President Jacob Zuma fired his internationally respected finance minister Pravin Gordhan in a cabinet reshuffle on last Thursday night. News and credit ratings. In a knee jerk reaction, the Rand fell 4% from an uninterrupted 20 months high of 12.30 against the USD on the news. Concurrently, Moody’s has affirmed the Baa1 long-term issuer rating. Moody’s downgrades Government of Mauritius rating. Talk to us Find a branch. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Mauritania thus having a big impact on the country's borrowing costs. Materially lower growth, combined with higher fiscal deficits could lead to a permanently higher debt and interest burden that is already elevated relative to Baa1 peers. Read more. Summary. The negative outlook on MCB’s long-term IDR reflects the negative impact of the pandemic on MCB’s operating […] Tony Lee Luen Len’s expertise lies in the field of sustainability, the built environment, multi-sector collaboration and social innovation. 09 June 2020. How Mauritian Entrepreneurs are Navigating the Effects of COVID-19? Moody’s Investors Service cut Mauritius' sovereign credit rating to Baa2 from Baa1 and maintained the negative outlook, citing as the main trigger behind the downgrade the weakening in fiscal and economic strength as a result of the shock brought on by the coronavirus pandemic. Mauritius’s strong governance and policy making are credit strengths, which support a stable macroeconomic environment and a favorable business climate for attracting foreign investment.