Agusto & Co. affirms the “A(ken)” and “A+(ngr)” ratings assigned to Shelter Afrique
This rating expires 30 June 2023.
Agusto & Co. affirms the “A(ken)” and “A+(ngr)” ratings assigned to Shelter Afrique (“SHAF” or “the Company”). The ratings reflect SHAF’s critical developmental mandate, moderate shareholder support, strong representation of beneficiary countries among members and multipronged strategy to drive affordable housing demand and supply in Africa. The ratings are, however, constrained by the Company’s relatively concentrated and small developmental portfolio and impact, sluggish capital contributions from the member countries, frequent changes in management and limited funding. Notwithstanding, SHAF’s adequate capitalisation for near-term business risks, satisfactory liquidity profile and very low leverage (and improved capacity to attract funding) mitigate the impact on the ratings.
The progress towards overcoming the Company’s weak asset quality, subpar profitability and limited activities due to frequent changes in management has also been taken into consideration.