Rating Release
Agusto & Co. assigns a BBB+(IM) rating to MBO Capital Management Limited (MCML or ‘the Manager’).
The rating expires on 02 November 2022
Agusto & Co. assigns a BBB+(IM) rating to MBO Capital Management Limited (MCML or ‘the Manager’). The rating reflects MCML’s well composed and experienced Board of Directors, adequately qualified management team, good research capabilities and defined deal screening process. However, the rating is constrained by the Manager’s exposure to key person risk across the risk management, internal control and internal audit functions. The rating also takes into consideration the Manager’s limited operational track, with no equity portfolio exits which implies that the efficiency of MCML’s investment risk management and deal structuring processes are yet to be adequately tested. Nonetheless, we note positively that the Manager has successfully exited some of its debt and quasi-debt investments with no record of default. We have also taken into consideration the weak macroeconomic environment which has the potential to heighten business and investment risks.
