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NR Ratings

Our Corporate Default (CD) Rating represents our opinion on a listed corporates' ability to minimise specific post-trade exposures suffered by investors when investing in them. NR Ratings produces Default Rating Reports with accompanying data probabilities for the Listed Issuer. Our assessment and information on corporate credit liquidity, reflects earning quality and local capital market infrastructure changes which impact risks.

Our CD Ratings can be very useful as a monitor of deteriorating credit situations long before they are reflected by other Africa Research. This kind of monitoring can be accomplished quite simply by setting up and keeping an eye on our watch list.

For Access to the 1st and Leading provider of Credit Fundamentals on Africa's Blue Chip Corporates, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.

Our Corporate Default Rating approach:

We use Default Models to rank corporates under scrutiny. These act as part of the Credit scoring process and is largely statistical, regressing instances of default against various risk indicators, such as a obligor's revenue, assets and liabilities, owner status, etc.

Default models directly model the default process, and are typically calibrated to market variables, such as the obligor's stock price or the credit spread on its bonds.

Our approach is dynamic in nature, showing sensitivity to business cycles and other fluctuations in the business environment. For example it is possible to compare the risk exposures which investors in Egypt, Mauritius and Nigeria are exposed to when buying or selling debt securities in those markets.

Applying Default Probabilities:

Default Probability (DP) estimation. The rating agencies provide very valuable historical data although their data tends to be heavily concentrated on the default of bond issuers as opposed to the default of companies.

Default Probabilities play an essential role in:

  • Credit Approvals as related to Basel II/III requirements
  • Risk Management
  • Internal Capital Allocation
  • Corporate Governance

Value Proposition

"Our Value Proposition":
What do you get with our offering -

  • Dynamic Default Ratings
  • Market Value of Assets
  • Market Value of Debt
  • Asset Volatility
  • Distance to Default
  • Default Probability
  • Historical Default Data on selected firms (up to 2years for selected firms)

What risks do we capture in our Corporate Default (CD) Rating:

  • Idiosyncratic default (“credit risk”)
  • Market risk; spread fluctuation
  • Correlation and recovery rates (“market risk”)
  • Credit event documentation (“basis risk”)

Alpha Scale


Alpha Scale

Summary Definition

1 – 3


Investors have a better than average chance of benefiting from good stable performance.

4 - 6


The firm is, however, more susceptible to the adverse effects of changes in circumstances and economic conditions than those entities rated 'A'.

7 - 9

C+/C/ C-

The firm is thus more sensitive to uncertainties and adverse circumstances to a greater degree than higher-rated entities.

10 - 11


Vulnerable to a greater degree of adverse change in sector circumstances and economic conditions than does entities rated ‘C’.

For more informaton on African Corporates that have been included in our Default and Credit Database please write to This email address is being protected from spambots. You need JavaScript enabled to view it.


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In the Press & Commentary

(NR Capital) Apr 2017 - African Business Magazine: Why the smart money is heading for African infrastructure

(NR Capital) Jun 2016 - CNBC: The state of infrastructurre developement in Senegal

(NR Capital) Nov 2013 - Nex Rubica Capital presents at the Thomson Reuters 3rd Annual Tradng Africa Summit in Cape Town, South Africa

(NR Capital) Nov 2013 - Nex Rubica Capital panelist at the Inaugural of South African Competiveness Forum an Initiative by Brand South Africa

(NR Capital) Sep 2013 - Triple A Frontier Investments & South African Petroleum Industry Assosiaction Funding Workshop supported by Nex Rubica Capital (Pty) South Africa

(NR Capital) Aug 2013 - Elidata signs with Nex Rubica Capital as Product Partner for Africa Strategy

(NR Capital) Jun 2013 - Nex Rubica Capital presents at the South African Suppliers Diversity Council: 2013 Synergy Conference and Business Opportunity Fair.

(NR Capital) May 2013 -  Nex Rubica Capital joins the Africa panel at The Exporta 5th Annual Trade & Commodity Finance Conference

(NR Indexes) Mar 2012 - Nex Rubica Capital acquires NR Indexes & Ratings LLP

(NR Capital) Jun 2011 - CNBC Africa - Regional Business Roundup on African capital markets

(NR Indexes) Feb 2011: Country Brief: Egyptian Market Highlights 

(NR Capital) Jan 2011 : Deep Impact in Nigeria's Financial Markets

(NR Indexes) Jan 2010: - Electronic Trading Sweeps Africa

NR Indexes: Sep 2008 - Kenya Firms among top performers in Nex Rubica’s African Equity Capital Markets Review

Benchmark Commentary: With the Egyptian Stock Exchange (EGX) still closed, the North African constituent of the NR Africa Top 40 and NR Africa Mid 45 became more sensitive to volatility in the Sub Saharan markets. Nigeria being the major driver in the Top 40 index dropped by -1.4% over the week. Increased price volatility in the Nigerian Banking sector saw more casualties with First Bank, Zenith Bank and Guaranty Trust Bank all losing ground as investors hastily bought shares following the coming M&A activity in the sector. Kenya remained the best performing country in the Top 40 with Telcoms reporting positive numbers of about 5.5% up from last week.

The NR Africa Top 40 saw $118,56mio worth of shares traded this week with liquidity levels on the Benchmark moving up to 0.1% from a year to date high of 0.6%. The NR Africa Mid 45 was less volatile dropping -17.9712 points over the week an equivalent of $31mio. Morocco was the major country looser as it dropped by -2.1% and Industrials by -0.9%. Kenyan stocks dominated the Top 5 list with Mumias Sugar and NIC Bank breaking through this week.

Index Rebalancing Week: The NR Africa Top 40 saw El Ezz Alexandria (Egypt) exit the basket, replaced by Suez Cement (Egypt).



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