Rating Release
Agusto & Co. hereby affirms the “Bbb” rating assigned to CardinalStone Financing SPV Plc’s Series I ₦5 billion Bond
The rating expires on 31 December 2023.
Agusto & Co. hereby affirms the “Bbb” rating assigned to CardinalStone Financing SPV Plc’s (“the Issuer”) 7% Series I ₦5 billion 5-year Bond (“the Issue” or “the Bond”) maturing in 2025. The Issuer is a special purpose vehicle created to issue bonds and on-lend the net proceeds to CardinalStone Partners Limited (“CSP” or “the Sponsor”). The rating mirrors the standalone rating of the Sponsor as the Issue is a direct, unconditional, senior and unsecured obligation of the Sponsor.
The rating of the Issue is supported by CSP’s recognisable brand in the financial services industry, satisfactory capitalisation, good profitability and competent management team. However, the rating is constrained by the Sponsor’s exposure to speculative grade counterparties, overly ambitious loan book growth in 2022 and concentration in clients’ managed funds. We have also considered the macroeconomic challenges that exist in CSP’s operating climate.
