Capricorn Group and Bank Windhoek see long-term ratings elevated
GCR Ratings has upgraded the long-term national scale issuer ratings for Capricorn Group and its core operating subsidiary, Bank Windhoek, citing their strong competitive positioning and resilient asset quality.
All ratings have been assigned a Stable outlook.
Capricorn Group’s Namibian long-term rating has been raised to AA(NA) from AA–(NA), with its short-term rating affirmed at A1(NA). Bank Windhoek’s Namibian long-term rating has also been upgraded to AA(NA) from AA(NA). The bank’s South African long-term issuer rating was revised upward to A(ZA) from A–(ZA), while its short-term rating was affirmed at A1(NA).
According to GCR, the ratings reflect the group’s “strong franchise, disciplined governance, adequate capital, and sound funding and liquidity, with stable risk metrics.” This strength is underpinned by Bank Windhoek’s position as Namibia’s largest bank by loans and advances, holding a 34.4% market share, and further supported by Capricorn Asset Management (CAM), the country’s largest asset manager, with N$57.1 billion in assets under management.
The group’s overall risk profile remains healthy, with a gross non-performing loan (NPL) ratio of 4.7% and a credit loss ratio (CLR) improving to 0.6% in 2025, reflecting stronger operating conditions in Namibia.
However, GCR noted that the “principal exogenous swing factor is Botswana’s liquidity cycle,” which has affected the group’s Botswana-based entity, Bank Gaborone (BG). BG’s NPLs increased by 40.2%, raising its NPL ratio to 6.8%.
Despite this segment asymmetry, the group’s overall risk remains balanced. Bank Windhoek’s NPL ratio of 4.0% remains below the industry average, demonstrating robust asset quality in its core market. Concentration in the real estate sector stands at 23.0% for Bank Windhoek and 34.6% for BG, though single-name exposure remains low.
All ratings have been assigned a Stable outlook.
Capricorn Group’s Namibian long-term rating has been raised to AA(NA) from AA–(NA), with its short-term rating affirmed at A1(NA). Bank Windhoek’s Namibian long-term rating has also been upgraded to AA(NA) from AA(NA). The bank’s South African long-term issuer rating was revised upward to A(ZA) from A–(ZA), while its short-term rating was affirmed at A1(NA).
According to GCR, the ratings reflect the group’s “strong franchise, disciplined governance, adequate capital, and sound funding and liquidity, with stable risk metrics.” This strength is underpinned by Bank Windhoek’s position as Namibia’s largest bank by loans and advances, holding a 34.4% market share, and further supported by Capricorn Asset Management (CAM), the country’s largest asset manager, with N$57.1 billion in assets under management.
The group’s overall risk profile remains healthy, with a gross non-performing loan (NPL) ratio of 4.7% and a credit loss ratio (CLR) improving to 0.6% in 2025, reflecting stronger operating conditions in Namibia.
However, GCR noted that the “principal exogenous swing factor is Botswana’s liquidity cycle,” which has affected the group’s Botswana-based entity, Bank Gaborone (BG). BG’s NPLs increased by 40.2%, raising its NPL ratio to 6.8%.
Despite this segment asymmetry, the group’s overall risk remains balanced. Bank Windhoek’s NPL ratio of 4.0% remains below the industry average, demonstrating robust asset quality in its core market. Concentration in the real estate sector stands at 23.0% for Bank Windhoek and 34.6% for BG, though single-name exposure remains low.
