Rating Release
Agusto & Co. upgrades the national scale ratings assigned to Shelter Afrique to “A+(ken)” and “Aa-(ngr)” with a stable outlook
The ratings expire on 30 June 2025.
Agusto & Co. upgrades the national scale ratings assigned to Shelter Afrique (“SHAF” or “the Company”) to “A+(ken)” and “Aa-(ngr)” with a stable outlook. The rating is hinged on the Company’s multilateral legal ownership and relationship with 44 African Governments as well as the critical developmental mandate to drive affordable housing demand and supply in Africa. Our ratings upgrade and stable outlook stem from the impending treaty-based establishment of Shelter Afrique Development Bank (SHAFDB) replacing the existing Act of Parliament foundation which should raise SHAF to a preferential creditor status and forestall the inconsistent capital contributions from the member countries in the near to medium term. As at 31 July 2024, 29 out of the 44-member countries have signed the agreement to establish SHAFDB. The Company’s low leverage and acceptable liquidity and capitalisation profiles also support the ratings upgrade. However, SHAF’s ratings remain constrained by weak asset quality which has been negatively impacted by legacy delinquent loans.
