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.
