Agusto & Co. assigns a “Bbb-” rating to CardinalStone Partners Limited.
The rating expires on 30 June 2021.
Agusto & Co. assigns a “Bbb-” rating to CardinalStone Partners Limited. The rating is supported by CardinalStone Partners Group’s (“CSPG”, “the Group”) good profitability, adequate capital, a good liquidity and funding profile and a stable management team. The rating is, however, constrained by high non-performing loan (NPL) ratios in the consumer and structured finance loan books, substantial exposure to unrated related parties and concentration in various portfolios. CSPG’s asset quality weaknesses further point to limitations in the Group’s risk management processes. The impact of the weak global and domestic economic environments has also been taken into cognisance.
CardinalStone Partners Limited began operations in 2008 providing asset management, financial advisory and investment banking services. The Group’s business has since expanded to include securities brokerage, registrars and consumer lending services. CSPG through various member entities is registered with the Securities and Exchange Commission as an issuing house, fund manager, broker/dealer and registrar and has a finance house licence from the Central Bank of Nigeria. The Group also makes proprietary investments in listed equity, fixed income and private equity.
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