The rating expires on 29 May 2022.
Agusto & Co. hereby upgrades the rating assigned to United Capital Plc.’s (‘United Capital’ or ‘the Issuer’) ₦10 billion Five-Year Senior Unsecured Fixed Rate (Series 1) Bond (‘the Issue’, or ‘the Bond’) to “A-”. The Bond-rating mirrors the stand-alone rating of United Capital. 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. The rating is supported by the Issuer’s large market share, good profitability and strong liquidity and funding profile. The rating is, however, constrained by significant exposures to related parties of United Capital’s erstwhile parent – UBA Plc – and weakening capital adequacy. The negative impact of the COVID-19 pandemic on the global and domestic economies and the expected impact on the Issuer’s business have also been taken into cognisance.
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