Agusto & Co. hereby affirms the ‘A-’ rating assigned to the Series 2 ₦8 billion 10-year Unsecured Bond (“the Issue” or “the Bond”) issued by FBNQ MB Funding SPV Plc (“the Issuer”). The Issuer is a Special Purpose Vehicle (SPV) set up by FBNQuest Merchant Bank Limited (“the Bank”, “FBNQ MB” or “the Sponsor”) for the issuance of debt securities. The rating is a notch lower than the Sponsor’s standalone ‘A’ rating by Agusto & Co., as the Bond is subordinated to other senior debt of the Bank and is adjudged to offer adequate safety of timely payments of interest and principal. FBNQ MB’s rating reflects its improved capitalisation, satisfactory asset quality, good liquidity profile, experienced management team and good ability to refinance, upheld by the membership of FBN Holdings Plc. However, the rating is constrained by the obligor concentration in the loan book, the harsh regulatory environment, the lingering COVID-19 pandemic and the slowly recovering macroeconomy.
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