Global Credit Rating Company Limited’s (‘’GCR’’), a leading rating agency in its latest report, has affirmed InfraCredit’s public national scale long term rating of AAA(NG) with a Stable Outlook.
According to the rating agency, “InfraCredit’s ‘AAA’ (NG) rating reflects the assessment of its business model, governance structure, capitalisation, risk mitigation mechanisms, financial performance, as well as the profile of the shareholders and capital providers. InfraCredit has demonstrated strong financial flexibility through diversification of its capital base during FY2018. This was as a result of an increased capitalisation of ₦21.8 billion via a combination of equity capital from Africa Finance Corporation and a long term subordinated unsecured loan from KfW Development Bank in 2018.
The assigned rating also recognizes InfraCredit’s stringent risk management process and obligations under its guarantees that have helped to strengthen exposure risk protection. InfraCredit guarantees the timely scheduled payment of principal and interest by the Issuer under the guaranteed debt, which confers unrestricted monitoring and step in rights on the Institution’’.
InfraCredit reported a profit of ₦171 million in FY 2018, from a loss position of ₦403 million in FY2017, demonstrating its financial viability and resilience by turning profitable within its first full year of commercial operations. This performance was majorly achieved on the back of the full year income generated from its guarantee portfolio and a stronger investment income from its paid-in capital.
Speaking on the ratings action, the Managing Director/CEO, Chinua Azubike said, “The rating reflects the strength of our business model, diversified capital base and strong risk management framework in line with global best practices. We have continued to make significant strides in Nigeria’s financial markets by strengthening our product portfolio and partnerships to unlock the potential for local currency infrastructure in Nigeria’’.
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