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 2026
Agusto & Co. hereby 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’), albeit subordinated to other senior debt obligations. Thus, the Bond’s assigned rating is a notch lower than the Sponsor’s standalone ‘Bbb’ rating issued by Agusto & Co. The rating is upheld by Nova Bank’s good liquidity profile, good capitalisation and improved profitability. However, the rating is constrained by the loan book concentration, rising levels of impaired loans and the dominance of a few customers in the deposit base.
