Rating Release
Agusto & Co. upgrades Wema Funding SPV Plc’s rating to ‘A-’, with a stable outlook
The rating expires on 10 September 2025.
Agusto & Co. hereby upgrades Wema Funding SPV Plc’s (“the Issuer”) Series II ₦17.7 billion 7-year 16.5% fixed rate bond (“the Issue” or “the Bond”) rating to ‘A-‘. The assigned rating is reflective of Wema Bank Plc’s (“the Bank” or “Wema Bank” or “the Sponsor”) standalone rating of Bbb+, alongside the additional security emanating from the partial investment of the Bond proceeds in Federal Government of Nigeria (FGN) bonds. The rating is upheld by better profitability of the Sponsor, improving asset quality and satisfactory capitalisation. However, the rating is constrained by the elevated funding cost which has resulted in lower margins, the low market share of the Bank and the prevailing macroeconomic headwinds which remain a threat to Nigerian businesses and households.
