Agusto & Co. affirms the ‘A’ rating assigned to Coronation MB Funding SPV Plc’s ₦25 billion Five-Year Fixed Rate

Agusto & Co. hereby affirms the ‘A’ rating assigned to Coronation MB Funding SPV Plc’s (‘the Issuer’) ₦25 billion Five-Year Fixed Rate Series 1 Subordinated Unsecured Bond (‘the Issue’ or ‘the Bond’) due in 2025. The Bond is guaranteed by Coronation Merchant Bank Limited (‘Coronation MB’, ‘the Sponsor’ or ‘the Bank’). The rating assigned to the Issue is a notch lower than the Sponsor’s standalone rating of ‘A+’ by Agusto & Co, given its subordinated status. Coronation MB’s rating reflects its good capitalisation, good liquidity profile, good asset quality and experienced management team. However, the rating is constrained by the weak economic recovery following the easing of COVID-19 restrictions as well as a concentration in its loan and deposit portfolios.