Moody’s, the world’s leading rating agency, announces the acquisition of a 51% stake in Global Credit Rating Company Limited (GCR).

GCR is present in various African countries including Nigeria, South Africa, Senegal, Kenya and Mauritius.

“GCR’s ratings play an important role in the growth of African financial markets by providing essential credit information across a range of economies and sectors,” said Rob Fauber, President and CEO of Moody’s: “By combining GCR’s successful national operations with Moody’s global expertise, we have a unique opportunity to expand Moody’s presence in a high-growth region.

In Nigeria, analysts see the move as aimed at helping Moody’s gain access to the domestic credit rating industry to compete with major players including DataPro and Agusto.

While Agusto was historically considered the market leader, DataPro has recently issued more credit ratings in the Nigerian market, including its foray into the Fintech and asset management segments of the market, where investors had hitherto had less visibility.

Speaking to the Managing Director of DataPro, Mr. Abimbola Adeseyoju, he said: “We are aware of Moody’s intention to enter the Nigerian market and the wider African market through an acquisition, which strengthens our outlook on the prospect of deepening the credit market in Africa. , particularly in Nigeria, where we believe there is significant scope for improving the depth and penetration of the credit market and the financial services sector in general.

“The imminent entry of peers like Moody’s also validates DataPro’s recent collaborative initiatives with different stakeholders to open new markets for ratings and advance them as a tool to improve governance, compliance and efficiency. operational in African corporate institutions, while providing investors with factual evidence based on the credibility and general fundamentals of issuers and their issued securities.

“We are leveraging technology and partnerships to advance our practice, and we are confident in the results so far, as evidenced by our breadth of coverage and the depth of our services. As you know, the rating service is a renowned offering, guided by global regulations and standards, and we have always aligned ourselves with global best practices, regardless of the circumstances of our national environment and market conditions.

This week, DataPro launched its weekly newsletter aimed at improving investor education and the use of credit ratings as a tool for investment decisions. “Therefore, we welcome new developments that can add value to the Nigerian financial market and catalyze momentum for new offerings that can increase the efficiency of capital allocation and resource mobilization towards to achieve sustainable growth in the Nigerian economy,” Mr. Adeseyoju added.

He explained that DataPro is not driven by competition because rating activity, if properly aligned, is driven by complementarity. “We give our opinions. We are not selling a product,” he said.

Interestingly, credit ratings in Nigeria remain an oligopoly game, with only three active players; Agusto & Co., DataPro Ratings and Global Credit Ratings (GCR), licensed by the Securities and Exchange Commission (SEC), the supreme capital market regulator.

Moody’s entry into the Nigerian market indicates that “there is something going on here,” says Adeseyoju, adding that “people are beginning to recognize the efforts we have made in the market over the years and the prospects that are in front.