Rating Release
Agusto & Co. affirms the ‘Bbb+’ rating assigned to FBNQ MB Funding SPV Plc’s ₦8 billion Series 2 10-year Unsecured Bond, with a “stable” outlook.
The rating expires on 30 June 2026
Agusto & Co. affirms the ‘Bbb+’ rating assigned to FBNQ MB Funding SPV Plc’s (“the Issuer”) ₦8 billion Series 2 10-year Unsecured Bond (“the Issue” or “the Bond”). The Issue’s rating reflects adequate capacity to meet all obligations relating to the Bond, relative to other debt instruments in Nigeria. The Issuer is a subsidiary of FBNQuest Merchant Bank Limited (“FBNQuest MB” or “the Sponsor” or “the Bank”), incorporated to raise debt securities for the Bank. As such, the Bond’s rating is anchored on the performance of the Sponsor. The Bond is subordinated to all senior debt obligations of the Bank; hence, the rating is one notch below the “A-” rating assigned to FBNQuest MB, which expires on 30 June 2026. The Sponsor’s rating reflects a good liquidity position, improved profitability and adequate capitalisation levels. However, the rating is constrained by the concentration in the loan portfolio and deposit base. Furthermore, uncertainty persists around the Bank’s capital raising plans, as regulatory approvals for the proposed divestment of First Holdco Plc and the transfer of ownership to new investors, announced in September 2024, remain pending as at 30 June 2025.
