Agusto & Co. affirms the ‘A’ rating assigned to FBNQ MB Funding SPV Plc.’s ₦5 billion 3-year 10.5% Fixed Rate Senior Unsecured Bond, with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. hereby affirms the ‘A’ rating assigned to the Series 1 ₦5 billion 3-year Senior Unsecured Bond (“the Issue” or “the Bond”) issued by FBNQ MB Funding SPV Plc (“the Issuer”). The Issuer is a Special Purpose Vehicle (SPV) set up by FBNQuest Merchant Bank Limited (“the Bank”, “FBNQ MB” or “the Sponsor”) for the issuance of debt securities. The rating is at par with FBNQ MB’s standalone “A” rating issued by Agusto & Co., given the status as a Senior Unsecured of the Bond and is adjudged to offer adequate safety of timely payments of interest and principal. FBNQ MB’s rating reflects its improved capitalisation, satisfactory asset quality, good liquidity profile, experienced management team and good ability to refinance, upheld by the membership of FBN Holdings Plc. However, the rating is constrained by the obligor concentration in the loan book, the unfavourable regulatory environment, the lingering COVID-19 pandemic and the slowly recovering macroeconomy.