Rating Release

Agusto & Co. hereby assigns a “Bbb-” rating to MCM Funding SPV Plc’s Series I ₦1.61 billion 3-Year Fixed Rate Senior Unsecured Bond. 

The rating expires on 31 December 2026. 

Agusto & Co. hereby assigns a “Bbb-” rating to MCM Funding SPV Plc’s (“MCM SPV” or “the Issuer”) Series I ₦1.61 billion 3-Year Fixed Rate Senior Unsecured Bond (“the Bond” or “the Issue”). The Issuer was established to finance MBO Capital Management Limited (“MCM”, “the Company” or “the Sponsor”) by issuing debt securities to the general public. Thus, the Issue is backed by the Sponsor’s undertaking to fulfil MCM SPV’s payment obligations to the bondholders. Consequently, the Bond rating mirrors Agusto & Co.’s “Bbb-” credit rating of the Sponsor. MCM’s rating reflects improved leverage and capitalisation in the financial year ended 31 December 2024 (2024 FYE), stable and experienced executive management team and nil non-performing loans (NPLs). We also considered the capacity of the Company to divest of a healthy portfolio of investee companies, which should continue to support earnings in the near term. However, the rating is constrained by the Sponsor’s weak liquidity profile and concentration in the equity and debt portfolios. We have also considered the impact of the weak macro environment on credit risk management and the ability to identify exit channels for existing investments.