The national scale long and short-term issuer ratings, as well as the international scale long term issuer rating of Grindrod Bank Limited have been affirmed. This reflects the bank’s historically superior cost of risk relative to peers, adequate capitalisation and sound funding structure and liquidity. This is balanced by the bank’s weak competitive position.
The risk position is a positive ratings factor. This opinion balances the bank’s very strong historical cost of risk, along with our expectation of a deterioration in asset quality as a result of Covid-19. The outlook is stable, balancing the severely weakened operating environment with our opinions on stable risk, capital, and liquidity.