Rating Release

Agusto & Co. hereby downgrades the rating assigned to Comercio Partners Limited to “Bbb-” with a stable outlook

The rating expires on 30 June 2024.

Agusto & Co. hereby downgrades the rating assigned to Comercio Partners Limited (“Comercio Partners”, “CPG” or “the Group”) to “Bbb-” due to the significant exposure to distressed Eurobonds and the absence of provisioning on the impaired assets. The rating reflects CPG’s low leverage, acceptable liquidity profile and experienced management team. However, the rating is constrained by heavy reliance on proprietary trading income, significant concentration in the investment portfolios and funds under management and dominance of key stakeholders in ownership and management. We have also taken into cognisance Nigeria’s fragile economy and the impact on consumers and businesses.

Comercio Partners is a financial services group that offers proprietary trading, investment banking, asset management, securities trading and alternative investment services. As at 31 December 2022, the total assets of CPG stood at ₦23.4 billion