On 4 March 2021, Moody's downgraded Mauritius Government's long-term issuer rating to Baa2 from Baa1, with a negative outlook maintained. As a consequence, MCB Ltd’s long-term bank deposit and issuer ratings were reviewed to Baa3 from Baa2 with a negative outlook.
The main driver for this rating action related to Moody’s lowering of Mauritius's Macro Profile score to “Weak+” from “Moderate-” to reflect the increasingly difficult operating and fiscal environment of the country.
In spite of this downgrade, MCB remains investment-grade rated by Moody’s and is one of the few financial institutions rated as such in sub-Saharan Africa. Despite the challenging environment, MCB continues to uphold sound fundamentals, as acknowledged by Moody’s with strong capital levels, high liquidity positions and stable funding profile. The Bank has sustained a resilient performance thanks to its successful diversification strategy, with more than 50% of its profit accruing from foreign-sourced activities.