Agusto & Co. hereby upgrades the rating of United Capital Plc to an A-, with a stable outlook
The rating expires on 30 June 2021.
Agusto & Co. hereby upgrades the rating of United Capital Plc (“United Capital”, “UCP” or “the Group”) to an ‘A-’. The upgrade is hinged on improved corporate governance with the addition of two independent non-executives to the Board of Directors for more effective oversight. We also noted a reduction in exposure to the former parent and related entities. The rating is supported by the Group’s good market share, good profitability across the individual businesses, adequate capitalisation and good liquidity.
The rating is, however, constrained by substantial exposures to entities related to UBA Plc, the erstwhile parent company. These related party exposures are considered a rating negative. We have also considered the negative impact of the COVID-19 outbreak on the performance of the financial services industry and the effect of the low yields on the Group’s investments.
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