Rating Release
Agusto & Co. hereby upgrades the rating assigned to Lotus Capital Limited to “Bbb+” with a stable outlook
The rating expires on 30 June 2025
Agusto & Co. hereby upgrades the rating assigned to Lotus Capital Limited (“Lotus Capital” or “the Company”) to “Bbb+”. The upgrade reflects Lotus Capital’s sustained strong positioning in the Nigerian Islamic finance investment management segment, which gives it considerable advantage in driving business volumes evidenced by the growing and sizeable clients’ funds under management. The rating is also supported by the Company’s improved risk management structure, good capitalisation and low leverage, stable funding from the principal promoters, minimal non-performing assets and experienced and qualified management team. However, the rating is constrained by Lotus Capital’s suboptimal corporate governance and oversight structure, concentration in ownership and the high cost of operations, which remains a threat to future profitability.
Lotus Capital is a specialist research and asset management firm primarily providing Sharia-compliant investment management services to clients through private portfolios and collective investment schemes.