Grindrod retains rating despite Sassa deal uncertainty

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
(Supplied)
(Supplied)

Cape Town - Global Credit Ratings (GCR) on Wednesday affirmed the national scale ratings assigned to Grindrod Bank of BBB+ and A2 in the long term and short term respectively, with the outlook accorded as stable.
 
“Grindrod Bank’s ratings reflect its established and streamlined business model (offering niche banking products and services to private, corporate and institutional clients in South Africa), its sound standalone financial profile, and demonstrated financial support from its parent, Grindrod Limited,” Omega Collocott, head of financial institution ratings at GCR, said in a statement on Wednesday.   

Grindrod Bank facilitates monthly grant payments as part of Net1 Cash Payment Solutions’ controversial contract with the South African Social Security Agency (Sassa).

The GCR said it noted the potential loss in net fee income, making up 16.5% of total operating income in 2016 (2015: 9.1%), due to the future uncertainty of this contract.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
16.16
+0.8%
Rand - Pound
21.49
+0.3%
Rand - Euro
18.23
+0.2%
Rand - Aus dollar
11.52
+0.2%
Rand - Yen
0.14
+0.0%
Gold
1,784.02
-0.5%
Silver
22.85
-1.3%
Palladium
1,793.50
+2.4%
Platinum
969.50
+1.5%
Brent Crude
72.72
-11.6%
Top 40
63,601
+1.9%
All Share
70,009
+2.0%
Resource 10
65,581
+2.4%
Industrial 25
93,900
+1.1%
Financial 15
13,460
+3.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot