Statement by Agusto & Co. Limited on the Rating of Municipality Waste Management Contractors Limited Medium-Term Notes Series 1 Tranches A, B & C Notes
In June 2017, Agusto & Co. assigned an “A+” rating to the Municipality Waste Management Contractors Limited’s (“MWMCL” or “the Issuer”) up to ₦27 billion Bond Issuance. The Bond is fully backed by Lagos State Government via the issuance of an Irrevocable Standing Payment Order (ISPO) authorizing monthly deductions from the State’s revenue account in connection with the financing of waste management service under the Cleaner Lagos Initiative (CLI) pursuant to the Lagos State Environmental Protection and Management Law, 2017. The Bond issuance, consisting three tranches, were fully covered by the Lagos State Government’s ISPO.
Agusto & Co. placed the rating of the Issue on “SUSPENSION” on 7 March 2019, due to delays experienced by the MWMCL Noteholders in receiving coupon and principal amounts which was due on 5 March 2019. However, as at 25 March 2019, all obligations (principal repayment and coupon payment) due on the MWMCL Series 1 Tranches A, B & C notes have been duly remitted to Noteholders.
Notwithstanding, Agusto & Co hereby retains the “SUSPENSION” of the Bond rating until it is able to obtain clarity regarding the review of the waste management contract and the associated ISPO.
The MWMCL’s bond was issued as a Private Company Bond (“PCB”) and does not require the approval of the Securities and Exchange Commission. In addition, the MWMCL’s bonds were noted on the PCB Noting Guidelines of the FMDQ OTC Securities Exchange in line with relevant capital market investment guidelines.