Rating Release

Agusto & Co. upgrades Parthian Partners Funding SPV Plc’s ₦10 billion Bond

The rating expires on 27 July 2024.

Agusto & Co. upgrades Parthian Partners Funding SPV Plc’s (‘the Issuer’) 3-Year 13.5% ₦10 billion Senior Unsecured Fixed Rate Short-term Bond Due 2025 (“the Issue” or “the Bond”) under the ₦10 Billion Bond Issuance Programme to a “Bbb”. The rating mirrors the Agusto & Co. “Bbb” credit rating of Parthian Partners Limited (“the Sponsor or PPL”) and is supported by the use of the Issue’s net proceeds to trade in a sub-national structured finance investment. PPL’s rating reflects good profitability, acceptable asset quality, good shareholder support and competent management team.

The Sponsor’s rating is, however, constrained by insufficient liquidity management and high leverage. Nigeria’s weak macro environment was also taken into cognisance. The Bond is a senior, direct, unconditional, unsecured obligation of the Issuer that ranks pari passu without any preference among all unsecured creditors.