Rating Release

Agusto & Co. affirms the ‘Bbb-’ rating assigned to NOVAMBL Investments SPV Plc’s Series I Bond, with a stable outlook

 The rating expires on 20 May 2023.

 Agusto & Co. hereby affirms the “Bbb-” rating assigned to NOVAMBL Investments SPV Plc’s (‘the Issuer’) ₦10 billion 12% 7-year Fixed Rate Series 1 Subordinated Unsecured Bond (‘the Issue’ or ‘the Bond’) due in 2027. The Bond is guaranteed by Nova Merchant Bank Limited (‘Nova MBL’ or ‘the Sponsor’ or ‘the Bank’) and the rating assigned to the Issue is a notch lower than the Sponsor’s standalone rating of ‘Bbb’ issued by Agusto & Co., given its subordinated status to other senior debt of the Bank. The rating is upheld by Nova MBL’s good asset quality, good capitalisation and adequate refinancing ability. The rating is however constrained by subpar profitability ratios, loan book concentration and vulnerability to the prevailing regulatory and macroeconomic headwinds.