Rating Release
Agusto & Co. hereby affirms the “Bbb” rating assigned to River Jamieson SPV Limited’s ₦24.5 Billion Five-Year 9% Fixed Rate Senior Guaranteed Series 1 Bond
The rating expires on 31 December 2024.
Agusto & Co. hereby affirms the “Bbb” rating assigned to River Jamieson SPV Limited’s (“River Jamieson”, “the SPV”, “the Issuer” or “the Company”) ₦24.5 Billion Five-Year 9% Fixed Rate Senior Guaranteed Series 1 Bond Due 2025 (“Series 1 Bond” “the Bond” or “the Issue”). The rating affirmation underscores the continuous fulfilment of the Irrevocable Standing Payment Order (ISPO) authorising the monthly deduction of ₦600 million from the Edo State Government’s (“Edo State” “EDSG” or “the State”) internally generated revenue (IGR) into a sinking fund account (SFA) towards meeting the Series 1 Bond obligations. The rating also considers the credit enhancement from the ₦4 billion set aside from the State’s Consolidated Revenue Fund Account (CRFA), which is sufficient to cover a semi-annual coupon and principal obligation. However, the heightened political risk in Edo State and the possibility of an early termination of the IGR-ISPO and withdrawal of the cash reserve amount are major threats to the Issuer’s capacity to continue to meet coupon and principal obligations to the Series 1 Bondholders.
