Rating Release

Agusto & Co. upgrades TAJBank Sukuk Issuance Programme SPV Plc’s rating to ‘Bbb’, with a stable outlook

The rating expires on 30 November 2024.

Agusto & Co. hereby upgrades TAJBank Sukuk Issuance Programme SPV Plc’s (“the Issuer”) perpetual Series 1 ₦11.4 billion Mudarabah Sukuk (“the Issue” or “the Sukuk”) rating to ‘Bbb’. The obligations emanating from the Sukuk are fully guaranteed by TAJBank Limited’s (“the Bank”, “the Sponsor”, or “TAJBank”) given that the Issuer is a non-operational entity, set up solely for raising qualifying instruments for the Sponsor. Thus, the Issue’s rating is a notch lower than TAJBank’s stand-alone rating of ‘Bbb+’ by Agusto & Co., given its subordinated status relative to other senior debt obligations of the Bank. The rating assigned to the Sponsor reflects its good liquidity profile, improving profitability, and adequate capitalisation. However, constraining these positives are the concentration risk in the financing portfolio and the prevailing macroeconomic headwinds.