Agusto & Co. upgrades Nigeria Mortgage Refinance Company Plc’s rating to ‘Aa-’

Agusto & Co. upgrades Nigeria Mortgage Refinance Company Plc’s rating to ‘Aa-’

Rating Release

Agusto & Co. upgrades Nigeria Mortgage Refinance Company Plc’s rating to ‘Aa-’

The rating expires on 30 June 2022 

Agusto & Co hereby upgrades the rating assigned to Nigeria Mortgage Refinance Company Plc (“NMRC” or “the Company”) to ‘‘Aa-’’ to reflect the Company’s good profitability, good asset quality, good capitalisation for current business risks, good liquidity and experienced management team. The assigned rating also takes into cognisance the irrevocable and unconditional guarantee of the Federal Government of Nigeria (FGN) on the Company’s bond issuances, which has supported NMRC’s strong track record in the Nigerian capital market. However, the rating is constrained by the low contribution of the Company’s core activities to earnings and concentration in the mortgage refinancing and placement portfolios. We have also considered the impact of Nigeria’s weak economy on NMRC’s operations.

The Company’s principal activity is the provision of long-term funds to eligible mortgage lenders through the refinancing of mortgage loans originated by primary mortgage banks and commercial banks.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

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