Rating Release 

Agusto & Co. hereby upgrades Family Homes Funds Limited’s (“Family Homes”, “FHFL” or “the Company”) ratings to “Aa” (long term) and “A1+” (short term)  with a stable outlook. 

The rating expires on 30 June 2027 

Agusto & Co. hereby upgrades Family Homes Funds Limited’s (“Family Homes”, “FHFL” or “the Company”) ratings to “Aa” (long term) and “A1+” (short term). The upgrade reflects Family Homes’ strengthened institutional profile, underpinned by the continued financial and strategic support from the Federal Government of Nigeria (FGN), which has reinforced its developmental mandate to expand affordable housing and enhanced access to long-term funding from international development finance institutions (DFIs). The ratings are also supported by FHFL’s good asset quality, reflected in the nil non-performing loans sustained by well-structured lending and security arrangements, strong capitalisation metrics, low leverage, good liquidity profile, and experienced management team. However, the ratings are constrained by the vulnerability to political interference and bureaucratic delays arising from the absence of an enabling statute protecting the Company’s operational independence and low profitability relative to other government-backed developmental institutions. We have also considered the impact of the prevailing macro environment on housing affordability and the execution of lower cost housing programmes.

Family Homes is a social housing finance and development institution promoted by the FGN to address Nigeria’s housing deficit through the provision of affordable housing and finance solutions to low- and middle-income households.