Rating Release
Agusto & Co. affirms the “Bbb-” rating assigned to NOVAMBL Investments SPV Plc’s ₦10 billion 12% 7-year Fixed Rate Series 1 Subordinated Unsecured Bond with a stable outlook
The rating expires on 20 May 2025
Agusto & Co. affirms the “Bbb-” 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 Bank Limited (‘Nova Bank’ or ‘the Sponsor’ or ‘the Bank’) and the assigned rating is a notch lower than the Sponsor’s standalone ‘Bbb’ rating issued by Agusto & Co., given the subordinated profile. The rating is upheld by Nova Bank’s good liquidity profile, adequate capitalisation and acceptable asset quality supported by conservative risk profiling. The rating is however constrained by concentration in its loan book, the dominance of a few customers in the funding base and the challenges associated with the transition to a commercial bank.