The ratings on Stanbic Bank Zimbabwe Limited (“Stanbic Zimbabwe”) reflect the bank’s sound business profile supported by above average market share, good levels of business diversification, franchise strength, and a track record of revenue stability, cognisant of bank’s predominantly monetary assets that are prone to a material adverse impact on performance in the hyperinflationary environment. Furthermore the ratings take into account adequate capitalisation, relatively stable funding structure and appropriate liquidity.
The outlook is stable, balancing the turbulent operating environment and our expectation that asset quality will not deteriorate materially and that Stanbic Zimbabwe will maintain sound financial performance building capital and reserving. Due the currently strained operating environment, we consider there to be limited upward ratings potential over the ratings horizon. Conversely, a deteriorating in capital, funding and liquidity could bring the ratings down.