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The business profile is ratings positive. The group has very good levels of business diversification. Though predominantly banking focused, the Group offers diversified financial services through nine subsidiaries including CBZ Bank. We expect additional business and revenue diversification via correspondent banking channels. In the 3rd quarter of 2020, the U.S Treasury Department cleared CBZ Bank of paying a potential USD385m penalty for a long outstanding Office of Foreign Assets Control ("OFAC") issue. The bank had two correspondent banking partners prior to that but now has 15 (as at June 2021).
The outlook is stable, balancing our expectation that CBZ Bank will maintain a sound business and financial profile supported by above average business line diversification, sound internal capital generation, sustained servicing of legacies and adequate levels of liquidity against the turbulent operating environment. National scale ratings reflect relativities to the local Zimbabwean peers only. Given the operating environment there is implied volatility in the ratings. Positive or negative ratings movement could follow a change in capitalisation, asset quality or local currency liquidity.