Rating Release
Agusto & Co. hereby upgrades the rating assigned to C&I Leasing Plc’s (“C&I Leasing” or “the Issuer”) Series II ₦10 billion 15.5% Fixed Rate Senior Secured Bond due 2028 (“the Issue” or “the Bond”) to “A-”, with a stable outlook
The rating expires on 30 June 2026
Agusto & Co. hereby upgrades the rating assigned to C&I Leasing Plc’s (“C&I Leasing” or “the Issuer”) Series II ₦10 billion 15.5% Fixed Rate Senior Secured Bond due 2028 (“the Issue” or “the Bond”) to “A-”. The rating is supported by C&I Leasing’s “Bbb” long term rating from Agusto & Co., which is notched up to reflect the security provided to the Bond by 10 unencumbered marine vessels owned by the Issuer and valued at ₦18.6 billion by Messrs Ubosi Eleh & Co. as at 17 January 2025, with a forced sale value of ₦13 billion. Applying a 25% haircut to the forced sale value yields a stressed collateral value of ₦9.8 billion, representing an estimated recovery rate of 110% on the outstanding Bond obligations, which we consider good. The Issuer’s rating is backed by satisfactory asset quality, acceptable capitalisation metrics, low leverage and strong ability to refinance maturing obligations with sustained access to bank credit lines, secured lease notes and other debt instruments.