Rating Release

Agusto & Co. affirms the “Bbb-sf“ rating assigned to Primero BRT Securitization SPV Plc’s ₦14,549,675,133.41 17% Fixed Rate Series 1 Bond Due 2031 (formerly ₦16.5 Billion 17% Bond Due 2026), with a stable outlook 

The rating expires on 22 October 2026. 

Agusto & Co. affirms the “Bbb-^sf” rating assigned to Primero BRT Securitization SPV Plc’s ₦14,549,675,133.41 17% Fixed Rate Series 1 Bond Due 2031 (formerly ₦16.5 Billion 17% Bond Due 2026) (“the Bond”, “Series 1 Bond” or “the Issue”) under the ₦100 billion Medium Term Note Programme. The rating affirmation is underpinned by the 100% unconditional and irrevocable credit guarantee provided by Sterling Bank Plc (“the Bank”), which covers coupon payments and principal redemption in the event of a default by the Issuer. Although the Series 1 Bond is structured as a receivables-backed instrument, with debt service expected to be funded from bus ticket sales, collections have remained insufficient to fully meet scheduled semi-annual obligations. As a result, the Issuer has continued to lean heavily on the credit support provided by Sterling Bank Plc to meet its debt service commitments.

Primero Transport Services Limited (“Primero”, “PTSL”, “the Company”, “the Sponsor” or “the Servicer”) holds the exclusive franchise to operate Nigeria’s longest dedicated Bus Rapid Transit Scheme (BRTS), spanning a 35.5-kilometre corridor between Ikorodu and Race Course at Tafawa Balewa Square (TBS), Lagos State. Primero operates along the dedicated bus route seven days a week. In July 2018, PTSL sponsored the incorporation of Primero BRT Securitisation SPV Plc (“the Issuer” or “SPV”), a special purpose vehicle with the sole purpose of raising funds to finance the acquisition of PTSL’s present and future rights to BRTS bus ticket receivables.