Agusto & Co. affirms the “Aaa” rating assigned to Mixta Real Estate Plc’s (“Mixta Nigeria”, “the Issuer”, or “the Company”) ₦2.961 Billion 16.5% Five-Year Fixed Rate Senior Guaranteed Bond Due 2023 (“Series 2 Tranche A”) but downgrades the rating assigned to the ₦2.32 Billion 17.75% Five-Year Fixed Rate Senior Secured Bond Due 2023 (“Series 2 Tranche B”) to “Bbb”.
This rating expires 30 September 2020.
The rating assigned to the Series 2 Tranche A Bond mirrors the “AA-” and “A1” ratings given to GuarantCo (“Guarantor”) by Fitch Ratings and Moody’s Investors Service respectively, which are equivalent of “Aaa” on Nigeria’s national rating scale, while the Series 2 Tranche B rating is based on the downward notching of the Issuer rating owing to its worsening financial condition amidst adverse macroeconomic environment as well as expected delay in disposing the pledged asset in a forced sale scenario, given its nature and tardy perfection process.
The Series 2 (Tranche A & B) Bonds were issued on 12 October 2018 at a coupon rate of 16.5% and 17.75% respectively, payable semi-annually in arrears over the five-year tenors of the Bonds. Each tranche of the Series 2 Bonds enjoys a two-year moratorium, which would lapse in October 2020. Subsequently, the Issue will be redeemed bi-annually over the remaining three years until final maturity in October 2023.
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