Agusto & Co. assigns ‘Aaa (NGA)’ rating, an ESG score of 2 and a stable outlook to Nigeria Sovereign Investment Authority.
The rating expires on 30 June 2023.
Agusto & Co. assigns ‘Aaa (NGA)’ rating to Nigeria Sovereign Investment Authority (‘NSIA or the Authority’) reflective of the credit rating of the Federal Republic of Nigeria (FGN) on our national rating scale. The NSIA is wholly owned by all the tiers of government in Nigeria. Given its ownership structure, we consider the Authority to be a government-backed institution. We have also assigned an ESG score of ‘2’ denoting that environmental, social and governance issues have minimal contributions to credit risk. The assigned rating also reflects the Authority’s strategic role in building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure and providing fiscal stability in periods of economic stress. However, constraining the rating is the Authority’s exposure to the Nigerian fragile macroeconomic climate though to an extent moderated by its investments in the United States treasury bills and other gilt edged securities.