Agusto & Co and Global Credit Ratings (GCR) have simultaneously re-affirmed the ‘AAA’ credit rating of the Infrastructure Credit Guarantee Company Limited (InfraCredit).
Notwithstanding the unprecedented impact of the COVID-19 pandemic, which continues to weaken global and domestic macroeconomic outlook, InfraCredit sustained its strong risk capital and broader balance sheet, with significant headroom to underwrite further guarantees in pursuit of its mission of unlocking long term local currency infrastructure finance in Nigeria’s real sector, according to a statement.
Notably, the statement pointed out that InfraCredit’s ‘AAA’ National Scale Rating, which is at par with the Nigerian Sovereign and reinforce the unparalleled credibility of its unconditional irrevocable guarantees, partly reflects the support of its shareholders and capital providers, which include the Nigeria Sovereign Investment Authority (NSIA), Africa Finance Corporation, GuarantCo (a Private Infrastructure Development Group company), and reputed multilateral institutions, including KfW Development Bank, who are committed capital providers.
In addition, InfraCredit’s balance sheet and guarantee programmes are further supported under risk-sharing arrangements with the United States Agency for International Development (USAID), amongst other development finance institutions.
The statement disclosed that in arriving at its rating decision, Agusto reiterated that, “the rating assigned to InfraCredit recognises its strategic importance and developmental role in the provision of local currency guarantees to enhance the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria.”
On its part, GCR emphasised that, “InfraCredit’s ‘AAA’ rating, with a stable outlook reflects its operational uniqueness as a guarantee provider, strong ownership and management profile, demonstrated financial flexibility, strong liquidity position, and profitability track record so far”.
“The asset quality (in terms of issued guarantees) is sound, with nil non-performing exposure recorded from inception till date”, GCR analysts added.
Speaking on the rating actions, InfraCredit’s Managing Director/CEO, Chinua Azubike said: “We are pleased with the simultaneous affirmations of InfraCredit’s ‘AAA’ rating, with stable outlook, by the duo foremost credit rating agencies, Agusto and GCR.
“This assertion, which follows the thorough independent assessments by these reputed institutions, is a testament of our balance sheet capacity, impeccable quality of our guarantees and sound risk management practice.
“We would continue to adhere to global best practice in transaction structuring, governance, and market development, as we continuously strengthen our capitalisation and broader capacity in pursuit of our vision to catalyse real sector growth through innovative infrastructure financing.”