Agusto & Co. assigns an “Aaa” rating, with a ‘stable’ outlook to Infrastructure Credit Guarantee Company Limited

Agusto & Co. assigns an “Aaa” rating, with a ‘stable’ outlook to Infrastructure Credit Guarantee Company Limited

Rating Release

Agusto & Co. assigns an “Aaa” rating, with a ‘stable’ outlook to Infrastructure Credit Guarantee Company Limited.

The rating expires on 30 June 2022.

The rating assigned to Infrastructure Credit Guarantee Company Limited (“InfraCredit” or “the Corporation”) is hinged on the support of its core capital providers; Nigeria Sovereign Investment Authority (NSIA), Africa Finance Corporation (rated Aaa (national rating) and Aa (FCY rating) by Agusto & Co) and InfraCo Africa Investment Limited (InfraCo). The rating also takes cognisance of the technical, governance and capital support extended by these shareholders and GuarantCo Management Company Limited (rated Aa- by Fitch and A1 by Moody’s); the callable capital provider. The increasing diversity in the equity base of InfraCredit as reflected in the addition of InfraCo to the shareholders during the year under review with a US$27 million investment and the $10 million long term, unsecured borrowing from the African Development Bank (AfDB) was also considered in the assigned rating.

The rating assigned also reflects the quality of InfraCredit’s guarantees and investment portfolios backed by an acceptable risk management framework, good return on investments during the year and an experienced management team. However, weak macroeconomic fundamentals exacerbated by the COVID-19 pandemic in addition to the low contribution of core business to earnings constrain the rating.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Credit Direct Limited Bbb Jun 30 , 2022 Stable Nigeria
Citihomes Finance Company Limited SR3 Jul 05 , 2022 N/A Nigeria
WSTC Financial Services Limited Bbb+ Mar 31 , 2022 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Limited A- Jun 30 , 2022 Stable Nigeria
Kawai Technologies Limited Bb Jun 30 , 2022 Neutral Nigeria