Rating Release
Agusto & Co. hereby upgrades the long-term rating of UTL Trust Management Services Limited to “A-”, and assigns a short-term rating of “A1”, with a stable outlook.
The rating expires on 30 June 2026.
Agusto & Co. hereby upgrades the long-term rating of UTL Trust Management Services Limited (“UTL” or “the Company”) to “A-”, and assigns a short-term rating of “A1”, reflecting the Company’s enhanced liquidity profile and sustained strong profitability indicators relative to most players in the trusteeship industry. The ratings also consider UTL’s established brand equity within the trusteeship business segment and its longstanding track record, with more than half a century history of operating in Nigeria. In addition, the ratings are supported by the Company’s low leverage and experienced senior management team. However, given UTL’s significant assets under trust, we believe that there should be enhanced equity buffer to mitigate potential asset impairments during market volatility. In addition, establishing board committees is necessary to strengthen the oversight function of the Board. We have also considered the impact of Nigeria’s weak economy on trustees’ businesses.
