The ratings on Stanbic Bank Zimbabwe Limited (“Stanbic Zimbabwe”), are supported by a strong domestic competitive positioning, reflected by its defendable market position and franchise in Zimbabwe, best demonstrated by its market leading low cost of funds. The ratings also factor in adequate capitalisation, solid risk position and structurally superior funding and liquidity. Lastly, the ratings benefit from ongoing support and integration of the bank with its ultimate parent, the Standard Bank Group.
Due the currently strained operating environment, we consider there to be limited upward ratings potential over the ratings horizon. Conversely, a material deteriorating in funding and liquidity could bring the ratings down.