Rating Release

Agusto & Co. hereby upgrades the rating of CardinalStone Financing SPV Plc’s 7% Series I ₦5 billion 5-year Bond to a ‘Bbb+’with a stable outlook

The rating expires on 31 December 2024.

Agusto & Co. hereby upgrades the rating of CardinalStone Financing SPV Plc’s (“the Issuer”) 7% Series I ₦5 billion 5-year Bond (“the Issue” or “the Bond”) maturing in 2025 to a ‘Bbb+’. The Issuer is a special purpose vehicle created to issue bonds and on-lend the net proceeds to CardinalStone Partners Limited (“CSP” or “the Sponsor”). The rating of the Issue reflects the upgrade of the Sponsor’s rating by Agusto & Co as the Issue is CSP’s direct, unconditional, senior and unsecured obligation. The Sponsor and its five subsidiaries (“CSPG” or “the Group”) provide an array of services including investment banking, asset management, securities registrar, securities brokerage, margin and asset-backed lending and trusteeship. The rating is upheld by CSPG’s good profitability, strong liquidity profile and experienced board and management. However, the rating is constrained by the Group’s reliance on volatile trading income, rising exposures to market risks and high concentration in clients’ managed funds.