Strengthening Mauritius’ Credit Culture and Capital Markets

What do you consider the most significant achievements in developing Mauritius’ credit rating culture and capital markets?

Prior to 2017, around the time when CARE Ratings (Africa) Private Limited began operations, Mauritius’ bond market was virtually non-existent, with total outstanding bonds (rated and listed) amounting to less than MUR 15 billion. Further, banks were the primary investors in these bonds.

The initial ratings assigned by CARE Ratings (Africa) Private Limited in 2016 and 2017 provided confidence to the local investors about the credit quality of leading issuers in the country, attracting a broader participation from insurance companies, pension funds, and high-net-worth individuals (HNWIs). The expanding investor base has fuelled strong growth, with the Mauritian bond market now crossing MUR 120 billion (USD 3 billion) in size, despite the non-mandatory nature of credit ratings.

In addition, many investors and lenders, including pension funds and non-bank financial institutions, rely on our credit ratings to assess the risk-adjusted returns within their portfolios. This enables the efficient allocation of capital, aligning with investor preferences and balancing risk and reward across the capital market.

The trust of the investment community in our ratings and the issuers has expanded their participation, in turn, enhancing market liquidity, stability, and continued growth. Further, the lending and investment approach in Mauritius has also been transformed, from a traditional asset-based lending to a more progressive cash flow-based model.

CARE Ratings (Africa) Private Limited has rated nearly 100 institutions in Mauritius across both private and public sectors. Can you share insights on how this has contributed to greater financial transparency and investor confidence in the Mauritian economy?

Credit ratings enhance the transparency of a country’s financial markets. Every rating assigned by CARE Ratings (Africa) Private Limited is accompanied by a detailed rating rationale, freely accessible on our website.

These reports provide an independent and objective analysis of a company’s business and financial risk profile, with a future perspective. This information and analysis not only empower the investors to make well-informed decisions, but also fosters a culture of accountability among issuers, critical for sustaining the growth and credibility of Mauritius’ bond market.

Once an entity is rated, we conduct ongoing surveillance through annual reviews, closely tracking the company’s financial and operational performance. This disciplined oversight also reinforces investor confidence, thus fostering trust and transparency.

Further, our rating criteria and sector-specific methodologies are also published on the website of CARE Ratings (Africa) Private Limited. This brings greater visibility to the creditworthiness, governance standards, and operational strengths of rated entities.

How would you describe the evolution of regulatory engagement, and what policy-level progress have you seen in the local debt and capital markets?

Over the past decade, Mauritius has made remarkable strides in developing a vibrant local currency bond market. Regulators and policymakers have worked consistently to enhance market efficiency, strengthen transparency, and safeguard investor interests. In close consultation with stakeholders, they have introduced guidelines that require, among other disclosures, the documentation of the intended use of proceeds and the pricing of proposed bond issues.

When Care Ratings (Africa) Private Limited was established in 2014, the credit rating market was still at a nascent stage. For instance, at that time, the two largest corporate bonds were rated only after issuance. Since then, the landscape has shifted considerably. Increasingly, issuers are seeking credit ratings ahead of issuance, recognising that a robust, independent rating can help them meet regulatory requirements, achieve more competitive pricing, and inspire greater investor confidence.

As of June 2025, approximately 75% of the corporate bond market in Mauritius has been rated. CARE Ratings (Africa) Private Limited has played a pivotal role in this transformation, providing investors, lenders, issuers, and regulators with clear, transparent, and concise rating rationales.

What strategic role will Mauritius play in CARE Ratings (Africa) Private Limited’s broader African growth story?

Mauritius is one of the three countries in the continent to have an investment-grade sovereign rating from CARE Ratings Limited, indicating the country’s macroeconomic discipline and political stability. The country’s legal framework, based on English common law, further enhances its appeal as a financial gateway. Combined with currency convertibility, a liberalised capital account, and a robust compliance environment, Mauritius offers a level of transparency and predictability that is often lacking in many emerging markets.

CARE Ratings (Africa) Private Limited has long recognised these strengths and the strategic value of operating out of Mauritius. Over the years, the country has played a central role in our efforts to promote a ratings culture and support the development of local capital markets.

As CARE Ratings (Africa) Private Limited broadens its presence across the continent, most recently marked by the launch of CareEdge South Africa, Mauritius will continue to serve as a vital base.