Rating Release

Agusto & Co. upgrades the rating of CardinalStone Financing SPV Plc’s ₦5 billion Five-Year Senior Unsecured Fixed Rate (Series 1) Bond to ‘Bbb’.

The rating expires on 31 December 2022.

Agusto & Co. hereby upgrades the rating assigned to the Series I ₦5 billion Five-Year Senior Unsecured Fixed Rate Bond (“the Issue”) of CardinalStone Financing SPV Plc (“the Issuer”) to “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 mirrors the standalone rating of CSP as the Issue is a direct, unconditional, senior and unsecured obligation of the Sponsor. Agusto & Co. assigned a “Bbb” rating to CSP in August 2021, with an expiry date of 30 June 2022. The rating upgrade is supported by the Sponsor’s improved risk management structure, asset quality and funding profile. The rating is also supported by CSP’s good profitability, adequate capitalisation, good liquidity profile and competent and stable management team. The rating is, however, constrained by exposures to unrated financial institutions and significant concentrations in asset portfolios. The negative impact of the COVID-19 pandemic on the global and domestic business environments has also been taken into cognisance.

CSP was incorporated as a private limited liability company and began operations in 2008. The Sponsor was licensed by the Securities and Exchange Commission (SEC) to provide asset management, financial advisory, structured financing and investment banking services. CSP has subsequently expanded operations and offerings to include registrar, consumer lending, securities brokerage and trustees services through subsidiaries in a vertically integrated group structure.