Rating Release

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

The rating expires on 30 June 2021.

The rating assigned to Infrastructure Credit Guarantee Company Limited (“InfraCredit” or “the Corporation”) recognises its strategic importance and developmental role in the provision of local currency guarantees to enhance the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria.

InfraCredit is capitalised by the Nigeria Sovereign Investment Authority (NSIA), in collaboration with Africa Finance Corporation (rated Aaa (national rating) and Aa (FCY rating) by Agusto & Co), GuarantCo Management Company Limited (rated Aa- by Fitch and A1 by Moody’s) and the KfW Development Bank (a German state-owned development bank). The rating recognises the strong support of its sponsors, which provide capital and technical assistance to the Corporation. The capital support was demonstrated by an additional €23.5 million loan facility granted to the Corporation by KfW in the period under review, following an initial 10-year facility of €31 million extended in December 2018.

The assigned rating reflects InfraCredit’s quality guarantee 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 occasioned by the novel COVID-19 pandemic adversely influence the availability of bankable and eligible infrastructure projects.