Rating agency Global Credit Rating Company (GCR) has upgraded PSG Konsult’s (KST) long-term rating to A- (previously BBB+) and its short-term rating to A1- (previously A2). It has also confirmed the outlook for both ratings as stable. This is the highest credit rating PSG Konsult has received to date.
“We are very pleased with this rating upgrade, particularly given prevailing volatility in the current economic environment,” said Mike Smith, Chief Financial Officer of PSG Konsult. “It reflects our firm’s ability to deliver sustained and consistent growth in earnings, even during weak economic periods, and puts us in sound company with other listed entities of similar size. We will continue to focus on improving operating margins and prioritising organic growth in the domestic market.”
In its rating rationale GCR states, “PSG Konsult’s upgrade reflects its conservative balance sheet fundamentals, risk profile and sound earnings capacity. The Company has been successful in executing its business plan, which has seen its business profile continue to strengthen, supported by robust growth in revenue and earnings over recent years. This has followed the well-defined strategy to refocus on core operations, which has allowed for the capturing of additional margin in the asset management and insurance businesses, albeit still anchored by its traditional, uniquely positioned advisory franchise network.”