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Moody's (MCO) Expands in Africa's Credit Market With GCR Buyout
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Moody’s Corp. (MCO - Free Report) has fully acquired Global Credit Rating Company Limited (GCR). This move expands the company’s footprint in Africa’s domestic credit markets. The terms of the deal were kept under wraps.
In 2022, Moody’s initially announced the acquisition of a majority stake in GCR Ratings.
Global Credit Rating has a presence across the continent, including in countries like Nigeria, South Africa, Kenya, Senegal and Mauritius. The firm rates a broad range of entities, including financial institutions, corporates, public sector issuers and structured transactions. Post-acquisition, GCR will continue to operate as an affiliate of Moody’s, developing its independent rating methodologies, issuing its own credit ratings and maintaining a distinct management team.
Combining Global Credit Rating’s solid footprint in the African market with Moody’s worldwide expertise will bolster the latter’s presence in the high-growth markets.
Rob Fauber, chief executive officer of Moody’s, said, “GCR provides investors with crucial insights and clarity into Africa’s fast-growing domestic credit markets, which play an important role in economic development throughout the continent.”
Marc Joffe, CEO of Global Credit, stated, "The full acquisition of GCR by Moody’s is an important milestone that will enable us to build on our deep local market insights and over a quarter century of growth across the African continent. It will also provide the opportunity to further develop solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities."
This strategic move will be immaterial to MCO’s 2024 earnings. This buyout aligns with Moody’s inorganic growth strategy.
Over the past several years, Moody’s has been strengthening its footprint and credit rating solutions through strategic acquisitions/partnerships. In 2023, it acquired SCRiesgo to boost its presence in Central America and the Dominican Republic. In 2022, it acquired 360kompany AG to strengthen its Know Your Customer capabilities. In 2021, the company acquired PassFort Limited, Bogard AB, RMS and Cortera. Its inorganic growth efforts are expected to help in further diversification of revenues and expand its global reach.
Over the past six months, shares of Moody’s have rallied 14.8% compared with 2% growth of the industry.
Last week, UBS Group AG (UBS - Free Report) marked an important milestone in the integration of UBS and Credit Suisse by completing the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG. This merger aligns with UBS' growth strategy to strengthen its market presence in competitive regions.
The merging of the Swiss entities simplifies the transition of clients and operations from Credit Suisse (Schweiz) AG to the UBS platform following business, client and product-specific needs. Clients of Credit Suisse (Schweiz) AG have become clients of UBS Switzerland AG as a result of the merger. However, they will continue to interact with UBS using current Credit Suisse platforms and tools until otherwise communicated.
Similarly, last month, BlackRock Inc. (BLK - Free Report) announced a deal to acquire Preqin, a premier provider of private markets data, for almost $3.2 billion (£2.55 billion) in cash.
This acquisition marks a significant milestone in BLK’s strategy to enhance its private markets capabilities by integrating investments, technology and data across the entire portfolio.
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Moody's (MCO) Expands in Africa's Credit Market With GCR Buyout
Moody’s Corp. (MCO - Free Report) has fully acquired Global Credit Rating Company Limited (GCR). This move expands the company’s footprint in Africa’s domestic credit markets. The terms of the deal were kept under wraps.
In 2022, Moody’s initially announced the acquisition of a majority stake in GCR Ratings.
Global Credit Rating has a presence across the continent, including in countries like Nigeria, South Africa, Kenya, Senegal and Mauritius. The firm rates a broad range of entities, including financial institutions, corporates, public sector issuers and structured transactions. Post-acquisition, GCR will continue to operate as an affiliate of Moody’s, developing its independent rating methodologies, issuing its own credit ratings and maintaining a distinct management team.
Combining Global Credit Rating’s solid footprint in the African market with Moody’s worldwide expertise will bolster the latter’s presence in the high-growth markets.
Rob Fauber, chief executive officer of Moody’s, said, “GCR provides investors with crucial insights and clarity into Africa’s fast-growing domestic credit markets, which play an important role in economic development throughout the continent.”
Marc Joffe, CEO of Global Credit, stated, "The full acquisition of GCR by Moody’s is an important milestone that will enable us to build on our deep local market insights and over a quarter century of growth across the African continent. It will also provide the opportunity to further develop solutions that meet a range of customer needs, including credit ratings, credit risk solutions, and ESG capabilities."
This strategic move will be immaterial to MCO’s 2024 earnings. This buyout aligns with Moody’s inorganic growth strategy.
Over the past several years, Moody’s has been strengthening its footprint and credit rating solutions through strategic acquisitions/partnerships. In 2023, it acquired SCRiesgo to boost its presence in Central America and the Dominican Republic. In 2022, it acquired 360kompany AG to strengthen its Know Your Customer capabilities. In 2021, the company acquired PassFort Limited, Bogard AB, RMS and Cortera. Its inorganic growth efforts are expected to help in further diversification of revenues and expand its global reach.
Over the past six months, shares of Moody’s have rallied 14.8% compared with 2% growth of the industry.
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MCO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Efforts by Other Finance Firms
Last week, UBS Group AG (UBS - Free Report) marked an important milestone in the integration of UBS and Credit Suisse by completing the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG. This merger aligns with UBS' growth strategy to strengthen its market presence in competitive regions.
The merging of the Swiss entities simplifies the transition of clients and operations from Credit Suisse (Schweiz) AG to the UBS platform following business, client and product-specific needs. Clients of Credit Suisse (Schweiz) AG have become clients of UBS Switzerland AG as a result of the merger. However, they will continue to interact with UBS using current Credit Suisse platforms and tools until otherwise communicated.
Similarly, last month, BlackRock Inc. (BLK - Free Report) announced a deal to acquire Preqin, a premier provider of private markets data, for almost $3.2 billion (£2.55 billion) in cash.
This acquisition marks a significant milestone in BLK’s strategy to enhance its private markets capabilities by integrating investments, technology and data across the entire portfolio.