Rating Release
Agusto & Co. assigns a “Bbb+” rating to Coronation Registrars Limited
The rating expires on 31 June 2023.
Agusto & Co. assigns a “Bbb+” rating to Coronation Registrars Limited (“CRL” or “the Company”). The rating is upheld by strong and stable business volumes from Access Holdings Plc and the Coronation Group, good profitability, low leverage, adequate capitalisation and large market share in the securities registrar industry. However, the rating is constrained by the Company’s reliance on unclaimed dividends which in our view is unsustainable, inadequate risk management practices as reflected in the concentration to related parties and significant exposure to an unrated counterparty. We have also considered the adverse impact of the challenges in the global and domestic macro environments on the performance of CRL’s clients and the securities registrar businesses.
The Company is licensed by the Securities and Exchange Commission (SEC) to provide securities register and data administration services to quoted and unquoted companies. CRL is one of the largest registrars in Nigeria, serving 37.5% of the listed companies on the premium board of the Nigerian Exchange (NGX) in 2022, with a strong emphasis on technology.