Rating Release 

Agusto & Co. hereby assigns a “Bbb+” rating to AB MFB SPV Plc’s Series I ₦1.178 billion 5-Year Fixed Rate Senior Unsecured Bond. 

The rating expires on 26 August 2027 

Agusto & Co. hereby assigns a “Bbb+” rating to AB MFB SPV Plc’s (“AB MFB SPV” or “the Issuer”) Series I ₦1.178 billion 5-Year Fixed Rate Senior Unsecured Bond (“the Bond” or “the Issue”). The Issuer will pay semi-annual coupons, while the principal will be amortised and repaid semi-annually after a one-year moratorium. AB MFB SPV was established to finance AB Microfinance Bank Nigeria Limited (“AB MFB”, “the MFB” or “the Sponsor”) by issuing debt securities to the general public. The Issue is backed by the Sponsor’s undertaking to fulfil the Issuer’s payment obligations to the bondholders. Thus, the Bond rating mirrors the “Bbb+” credit rating of AB MFB. The rating reflects the Sponsor’s good asset quality, parental support, good liquidity profile and experienced management team. However, the MFB’s rating is constrained by sustained pressure on profitability and capitalisation due to high FCY-denominated technology expenses, reliance on costly tenured deposits and concentration in borrowed funds. The weak macro environment and its impact on the Sponsor’s target market and costs were also considered.