The Zambia Credit Rating Agency Limited (CRA) is in talks with the Bank of Zambia (BoZ), the Securities and Exchange Commission (SEC) and the Pensions and Insurance Authority (PIA) to make it compulsory for all commercial banks, insurance companies and listed companies to have regular credit rating in order to build credit worthiness to attract investors.
The Executive Director of Strategy and Business Development, at CRA Mr. Chishimba Yumbe, indicated that to mandating regular credit rating of companies will boost the financial market growth of the country.
“Since investors need to know the companies they wish to invest in, hence rating of a country or company opens opportunities and builds confidence in investors” said Mr. Yumbe.
CRA’s Chief Executive Officer Mr. Wilson Kalumba indicated that “in last 6 months CRA has conducted ratings on 16 companies in various sectors like insurance, banking and manufacturing.”
CRA is an independent credit rating agency operating in Zambia since September 2014 after being licensed by the Securities and Exchange Commission of Zambia.
The company provides independent and objective ratings to private sector and public sector entities to keep abreast with international developments and adapt the best practices to serve the domestic environment.