Rating Release
Agusto & Co. affirms the “Bbb-” credit rating assigned to NOVAMBL Investments SPV Plc’s (‘the Issuer’) ₦10 billion 12% 7-year Fixed Rate Series 1 Subordinated Unsecured Bond with a stable outlook.
The rating expires on 20 May 2024.
Agusto & Co. hereby affirms the “Bbb-” credit rating assigned to NOVAMBL Investments SPV Plc’s (‘the Issuer’) ₦10 billion 12% 7-year Fixed Rate Series 1 Subordinated Unsecured Bond (‘the Issue’ or ‘the Bond’) due in 2027. The Bond is guaranteed by Nova Merchant Bank Limited (‘Nova MBL’ or ‘the Sponsor’ or ‘the Bank’) and the rating assigned to the Issue is a notch lower than the Sponsor’s standalone rating of ‘Bbb’ issued by Agusto & Co., given its subordinated profile. The rating is upheld by Nova MBL’s good asset quality, good capitalisation and improved profitability despite regulatory and macroeconomic headwinds. The rating is however constrained by the loan book and funding base concentration as well as the volatility in the operating terrain.
