Agusto & Co. hereby assigns a ‘Bbb’ rating to Lotus Capital Limited

Rating Category: Securities & Investment Firms

Agusto & Co. hereby assigns a ‘Bbb’ rating to Lotus Capital Limited

Rating Release

Agusto & Co. hereby assigns a ‘Bbb’ rating to Lotus Capital Limited

The rating expires on 30 June 2023.

Agusto & Co. hereby assigns a ‘Bbb’ rating to Lotus Capital Limited (“Lotus Capital” or “the Company”). The rating is supported by the Company’s satisfactory asset quality, adequate capitalisation, satisfactory profitability, low leverage and competent and experienced management team. The rating is also supported by Lotus Capital’s strong brand and growing market share in the ethical asset management space and pioneer status in Islamic finance in Nigeria. The rating is, however, constrained by the Company’s subpar governance structure, deficiencies in the risk management structure and concentration in ownership and in funding.

Lotus Capital was incorporated in 2004 and licensed by the Securities and Exchange Commission (SEC) in 2006 to provide fund/portfolio management services. The Company has a wholly-owned subsidiary – Lotus Financial Services Limited (‘LFSL’), which is licensed as an issuing house and corporate investment adviser by SEC. Lotus Capital provides a bouquet of financial services including Sharia-compliant investment and portfolio management and structured financing to high net-worth individual (HNI), institutional and retail clients.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.
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