Rating Release

Agusto & Co. assigns a “A” rating to FBNQ MB Funding SPV Plc Series 1, ₦10 billion 3-year Fixed Rate Senior Unsecured Bond

The rating expires on 30 June 2020.

Agusto & Co. hereby assigns a rating of “A“ to FBNQ MB Funding SPV Plc Series 1, ₦10 billion 3-year Fixed Rate Senior Unsecured Bond guaranteed by FBNQuest Merchant Bank Limited. The rating assigned to the Issue mirrors the standalone rating of the Sponsor, as the Issue is unsecured and ranks pari passu without discrimination with all of the Issuer’s existing and future senior, unsecured obligations.

FBNQuest Merchant Bank Limited is rated “A” by Agusto & Co. The rating is hinged on the Bank’s good liquidity profile, adequate capitalisation for current business risks, satisfactory asset quality within regulatory thresholds, profitability profile since obtaining a merchant banking license, as well as membership of FBN Holding Company Plc, all driven by an experienced management team. The rating is however moderated by sectorial concentrations in its loan portfolio, heightening vulnerabilities to credit risk crystallisation, as well as elevated operating expenses following changes to the organisation’s structure as part of the FBN Quest Group and substantial investments in information technology.