Rating Release
Agusto & Co. hereby upgrades the rating assigned to Family Homes Funds Limited to “Aa-” with a stable outlook
The rating expires on 30 June 2025
Agusto & Co. hereby upgrades the rating assigned to Family Homes Funds Limited (“Family Homes Limited”, “FHFL” or “the Company”) to “Aa-”. The upgrade reflects the strong support Family Homes Limited continues to receive from the Federal Government of Nigeria (FGN) following the change in administration, which is evident from the commitment through the injection of capital in the form of grants to fund business activities. The rating is also upheld by FHFL’s rising developmental impact, strong capitalisation, good liquidity and funding profile, experienced and competent management team, and good asset quality with nil non-performing loans sustained by the insistence on Irrevocable Standing Payment Orders (ISPOs) and bank guarantees for loan repayments. However, the rating is constrained by the Company’s high vulnerability to political influence that could disrupt governance and the low profitability relative to other comparable development finance institutions (DFIs) in Nigeria.
