Rating Release
Agusto & Co. affirms the ‘Bbb+’ rating assigned to Wema Funding SPV Plc, with a stable outlook
The rating expires on 10 September 2024.
Agusto & Co. hereby affirms the ‘Bbb+’ rating of Wema Funding SPV Plc’s (“the Issuer”) Series II ₦17.7 billion 7-year 16.5% fixed rate bond (“the Issue” or “the Bond”). The rating is a notch higher than Wema Bank Plc’s (“the Bank” or “Wema Bank” or “the Sponsor”) rating of ‘Bbb’ , given that 45% of the bond proceeds was invested in a 13.53% 7-year Federal Government of Nigeria (FGN) bond and held in the custody of the Joint Trustees. The Issuer’s rating reflects its good asset quality and improving profitability metrics. However, constraining these positive factors are the elevated operating cost profile of the Bank, capital that requires improvement and the prevailing macroeconomic headwinds.
