GCR Upgrades Letshego Namibia to A+(NA)

MEDIA RELEASE                            

Issued: 29 August 2024

GCR Ratings (GCR) has upgraded the Namibian national scale long-term issuer ratings for Letshego Holdings Namibia, Letshego Bank Namibia, and Letshego Micro Financial Services Namibia to A+(NA) from A(NA). The short-term issuer ratings of A1(NA) have been affirmed, and the outlook has been revised to Stable.

Karl-Stefan Altmann, Chief Financial Officer at Letshego Namibia, commented: "This upgrade reflects Letshego's enhanced competitive position, solid asset quality, strong capitalisation, and commitment to responsible lending."

Key Drivers of the Upgrade:

• Social Bond Listing: Letshego's listing of the first social bond on the Namibian Stock Exchange raised N$322 million, with N$260 million issued in three-year senior unsecured notes. The proceeds will support financial inclusion for underserved communities by funding sectors such as affordable housing, healthcare, and education.

• Strong Financial Performance: The Group's asset quality remains robust, with non-performing loans at 5.8% (below the industry average of 6%) and low credit losses at 0.3%. Capitalisation is strong, with a GCR capital ratio of 42.0% as of December 2023.

• Diversified Growth and Resilience: Letshego continues to diversify its funding base while maintaining a resilient financial profile. Liquidity remains adequate, with liquid assets covering short-term wholesale funding at 1.3x as of December 2023.

Letshego Holdings Namibia is well-positioned to sustain its growth trajectory and advance financial inclusion and economic development across Namibia.

For media inquiries, please contact:

Mrs. Ongame Mutorwa

Communications Manager

Tel: (+264) 81 255 3658

E-mail: OngameM@Letshego.com