Rating Release
Agusto & Co. affirms the “Bbb-” rating assigned to Coronation MB Funding SPV Plc’s ₦25 billion Series 1 Subordinated Unsecured Bond with a stable outlook
The rating expires on 25 June 2025
Agusto & Co. affirms the “Bbb-” rating assigned to Coronation MB Funding SPV Plc’s (the Issuer) ₦25 billion 6.25% Five-Year Series 1 Subordinated Unsecured Bond (‘the Issue’ or ‘the Bond’). Coronation Merchant Bank Limited (‘Coronation MB’ or ‘the Sponsor’ or ‘the Bank’), rated ‘Bbb’ by Agusto & Co., guaranteed the Issue. Given the subordinated status of the Bond, the assigned rating is a notch lower than the Sponsor’s standalone rating issued by Agusto & Co. Coronation MB’s rating is underpinned by a nil impaired loan position, improving profitability, good shareholders’ support, good liquidity and experienced management team. However, offsetting the rating are the obligor concentration in the loan book, high funding costs and the challenging macroeconomic environment.
