Rating Release
Agusto & Co. affirms the ‘A-’ rating assigned to FBNQ MB Funding SPV Plc’s (“the Issuer”) Series 2 ₦8 billion 10-year Unsecured Bond with a stable outlook.
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the ‘A-’ rating assigned to FBNQ MB Funding SPV Plc’s (“the Issuer”) Series 2 ₦8 billion 10-year Unsecured Bond (“the Issue” or “the Bond”). The Issuer is a Special Purpose Vehicle (SPV) set up by FBNQuest Merchant Bank Limited (“the Bank”, “FBNQuest MB” or “the Sponsor”) for the issuance of debt securities. Given its subordinated nature, the Issue’s rating is a notch lower than the ‘A’ rating assigned by Agusto & Co. to the Sponsor. FBNQuest MB’s rating reflects its good capitalisation, reducing non-performing loan ratio, improved profitability and strong ability to refinance – upheld by the synergies with FBN Holdings Plc. However, the rating is constrained by obligor concentration in the loan book, concentrated deposit base and the prevailing macroeconomic vagaries.
