Agusto & Co. affirms the ‘A-’ rating assigned to FBNQ MB Funding SPV Plc.’s ₦8 billion 10-year 6.25% Fixed Rate Subordinated Unsecured Bond, with a stable outlook

Rating Category: Bank bonds

Agusto & Co. affirms the ‘A-’ rating assigned to FBNQ MB Funding SPV Plc.’s ₦8 billion 10-year 6.25% Fixed Rate Subordinated Unsecured Bond, with a stable outlook

Rating Release

Agusto & Co. affirms the ‘A-’ rating assigned to FBNQ MB Funding SPV Plc.’s 8 billion 10-year 6.25% Fixed Rate Subordinated Unsecured Bond, with a stable outlook.

The rating expires on 30 June 2023.

Agusto & Co. hereby affirms the ‘A-’ rating assigned to the Series 2 ₦8 billion 10-year 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 a notch lower than the Sponsor’s standalone ‘A’ rating by Agusto & Co., as the Bond is subordinated to other senior debts of the Bank and is adjudged to offer adequate safety of timely payments of interest and principal. FBNQ MB’s rating reflects its good capitalisation, satisfactory asset quality, experienced management team and good ability to refinance – upheld by the synergies with FBN Holdings Plc. However, the rating is constrained by weak profitability, obligor concentration in the loan book and the harsh regulatory environment.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.
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