Rating Release
Agusto & Co. hereby assigns a ‘A-’ rating to United Capital Plc’s Series I ₦10 Billion Bond
This rating expires 29 May 2023.
Agusto & Co. hereby affirms the “A-” rating assigned to United Capital Plc.’s (‘United Capital’ or ‘the Issuer’ or ‘the Group’) ₦10 billion Five-Year Senior Unsecured Fixed Rate (Series I) Bond (‘the Issue’ or ‘the Bond’). The Bond rating mirrors the stand-alone rating of United Capital Plc. The Issue is a direct, unconditional, senior and unsecured obligation of the Issuer, and thus, ranks pari passu with all other unsecured senior creditors of United Capital Plc. The rating is supported by the Issuer’s good liquidity and funding profile, large market share and good profitability. The rating is, however, constrained by significant exposures to related parties of United Capital’s erstwhile parent (UBA Plc) and weakening capital adequacy. The impact of the global economic downturn due to the lingering effects of the pandemic and the Russian-Ukraine crisis has also been taken into consideration.
United Capital is a financial services group that offers asset management, securities trading, investment banking, trusteeship and consumer lending services. The Issuer’s total assets stood at ₦453.6 billion as at 2021 FYE.
