(Business in Cameroon) - London-based economic and financial consulting firm HPS International Consulting, founded in London by Cameroonian Prosper H. Sugewe (photo) and registered in Cameroon since 2007, recently created "Ewatch Africa Investment Analytica S.A.," the very first credit rating agency in Central Africa.
According to the founding documents, Ewatch Africa Investment Analytica SA will evaluate “credit risks and the financial solvency of companies, states, local authorities, financial institutions or financial operations on the Central African money and financial market."
"As the only player in the CEMAC Zone, in a sector somewhat neglected by Standard & Poors (S&P), Fitch Ratings and Moody's, and watched by the Ivorian Bloomfield Investment Corporation, the new agency wants to establish itself as the leader in the CEMAC financial market," says its promoter, who is waiting for the new entity to be approved by the Central African Financial Market Supervisory Commission (Cosumaf).
Ewatch Africa Investment Analytica is set to enter the CEMAC zone’s rating market, at a time when the states of this community space are increasingly resorting to the financial markets to raise capital. "It is necessary to establish the true intrinsic value of the credit quality of companies, a country, a local authority, or a financial institution, in local currency. Because the wealth of the rated entity is defined in local currency and such currency is the one in which it creates value," explains Prosper H. Sugewe.
As a reminder, the credit rating of a company or institution is based on some indicators through which the company or institution’s solvency is assessed at a specified point in time. It indicates the rate of an institution’s ability to pay its debts, and meet its commitments over a given period.