Rating Release
Agusto & Co hereby assigns an “S2sf” rating to Golden Oil Funding SPV Plc’s ₦15 Billion Asset-Backed Commercial Paper (ABCP) Issuance Programme
The rating expires on 30 April 2024.
Agusto & Co hereby assigns an “S2sf” rating to Golden Oil Funding SPV Plc’s (“GoldenOil Funding SPV” or “the Issuer”) ₦15 Billion Asset-Backed Commercial Paper (ABCP) Issuance Programme to be issued at a discount (zero-coupon) in multiple tranches of up to 270 days (“the CPs” or “the Notes”). The assigned rating reflects the upward notching of the standalone “Bb+” rating of Golden Oil Industries Limited (“Golden Oil”, “GOIL”, “the Promoter” or “the Guarantor”) based on the collateral cover from the pledged Underlying Assets (agricultural commodities). Although the pledged agricultural commodities (agro-commodities) are perceived to be liquid and tradable, we recognise the extreme price risk associated with assets of this nature. Also, we consider the lack of historical data on the price behaviour of some of the pledged agro-commodities as a downside risk to the recovery prospect of the ABCP.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
