Agusto & Co. has assigned a rating of Bbb+ to C&I Leasing Plc’s ₦10 billion 7-year Series II Bond.

Agusto & Co. has assigned a rating of Bbb+ to C&I Leasing Plc’s ₦10 billion 7-year Series II Bond.

Rating Release

Agusto & Co. has assigned a rating of Bbb+ to C&I Leasing Plc’s ₦10 billion 7-year Series II Bond with a stable outlook

 The rating expires on 3 June 2022.

Agusto & Co has assigned a rating of “Bbb+” to C&I Leasing Plc.’s (“C&I Leasing”, “the Issuer”) ₦10 billion Series II 15.5% Senior Secured Fixed Rate Bonds Due 2028 (“the Issue”, “the Bond”). The Bond is secured by 15 marine vessels – 10 unencumbered vessels and 5 encumbered vessels (“the Security”) – owned by the Issuer and jointly valued at ₦17.2 billion on the open market by Ubosi Eleh & Co. The rating is supported by a notching up of the Issuer’s “Bbb” rating due to a 66% expected recovery rate from the enforcement of the Security under a forced sale ₦12.9 billion valuation and after the repayment of the balance due to the Series I bond and the encumbered vessels’ creditor. In our view, the expected credit loss on the Issue is moderate in the event of default because of the marine vessels which provide credit enhancement for the Bond.

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
C&I Leasing Plc ₦10 billion 7-year Series II Bond Bbb+ Jun 03 , 2022 Stable Nigeria
C&I Leasing Plc ₦7 billion 5-year Series I Bond A- Jun 11 , 2022 Stable Nigeria
C&I Leasing Plc Bbb- Jun 30 , 2022 Stable Nigeria
Credit Direct Limited Bbb Jun 30 , 2022 Stable Nigeria
Citihomes Finance Company Limited SR3 Jul 05 , 2022 N/A Nigeria

Corporates

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

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Funding 1 Plc’s Series 1 Bond A- May 31 , 2022 Stable Nigeria
Viathan Funding Plc.’s ₦10 billion 10-year Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 Aaa Dec 31 , 2027 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria