In Summary
  • GCR has retained the national scale ratings assigned to Centum of A(KE) for long term borrowing and A1(KE) for short term debt.
  • The credit ratings, valid until July, 2019 with a positive outlook, boost the firm’s ability to mobilise funds in Kenya at favourable interest rates.

South Africa’s Global Credit Ratings (GCR) has affirmed Nairobi Securities Exchange (NSE)-listed Centum Investments Company Plc’s ability to timely meet financial obligations, backing the firm’s diversified portfolio across the sectors to support growth.

GCR has retained the national scale ratings assigned to Centum of A(KE) for long term borrowing and A1(KE) for short term debt.

The credit ratings, valid until July, 2019 with a positive outlook, boost the firm’s ability to mobilise funds in Kenya at favourable interest rates.

“Much of the value creation has largely been driven by (assets) growth and real estate portfolios, with two more large property ventures expected to contribute strongly to realised and fair value profits over the next few years,” GCR says in the ratings note.

“Nevertheless, the projects’ prospects are closely related to the performance in the property market, which is under some pressure.”

Centum recorded a 35.18 per cent decline in fair value gains on its real estate investments in the financial year ended last March to Sh4.18 billion from Sh6.45 billion the year before.

The decelerated capital appreciation was a reflection of Kenya’s real estate market which suffered slowed growth in sales prices last year.

Page 1 of 2