Rating Release
Agusto & Co. affirms the ‘A-’ rating assigned to the Tranche A of the Series I 5-year subordinated bond (‘Tranche A’) and the ‘A’ rating assigned to the Tranche B of the Series I 5-year senior unsecured bond (‘Tranche B’) of FSDH Funding SPV Plc.
The rating expires on 4 December 2025.
Agusto & Co. affirms the ‘A-’ rating assigned to the Tranche A of the Series I 5-year subordinated bond (‘Tranche A’) and the ‘A’ rating assigned to the Tranche B of the Series I 5-year senior unsecured bond (‘Tranche B’) of FSDH Funding SPV Plc (“the Issuer” or “the SPV”). The combined issue of ₦12 billion (“the Issue”) is the first series of a ₦30 billion debt issuance programme (“the Programme”) registered with the Securities and Exchange Commission (SEC) in 2021. The Issuer is a special purpose vehicle set up by FSDH Merchant Bank Limited (‘the Bank’ or ‘FSDH MB’ or ‘the Sponsor’) for the issuance of debt securities with the Bank and other subsidiaries of FSDH Holding Company Limited as the ultimate beneficiaries.
The rating assigned to Tranche A is a notch lower than the Sponsor’s stand-alone rating of ‘A’ by Agusto & Co., given its subordinated status, while the rating assigned to Tranche B reflects its seniority ranking to other unsecured obligations of the Bank. FSDH MB’s rating reflects its good profitability, good liquidity profile, acceptable capitalisation and experienced management team. However, the rating is constrained by concentration in the loan book, subpar funding relative to their commercial bank counterparts and the weak macroeconomic climate of Nigeria.