Rating Release
Agusto & Co. hereby assigns a ‘Bbb’ rating to Coronation Securities Limited
The rating expires on 30 June 2023.
Agusto & Co. hereby assigns a ‘Bbb’ rating to Coronation Securities Limited (‘COSEC’ or ‘the Company’). The rating reflects COSEC’s good capitalisation, low leverage, good liquidity profile and strong support from related companies in the Coronation Group. However, the rating is constrained by significant exposure to a single counterparty, the absence of a functional risk management unit, sizeable exposure to a startup oil & gas firm which we are unable to ascertain the credit quality, and low contribution of core business activities to profitability. We have also considered the impact of challenges in the macro environment on the Company’s business.
COSEC is licensed by the Securities Exchange Commission (SEC) and Nigerian Exchange Limited as a broker/dealer. The Company provides securities trading services to high net-worth individuals, institutional investors and retail clients. As at 31 December 2021, COSEC’s total assets stood at ₦3.6 billion.