InfraCredit Receives AAA Rating From GCR, Agusto

Infrastructure Credit Guarantee Company Limited said it has received AAA credit rating from Agusto & Co and Global Credit Ratings.

InfraCredit is a credit guarantee institution backed by the Africa Development Bank, the Nigeria Sovereign Investment Authority and some other financial institutions to provide local currency guarantees and mobilise long term debt financing for infrastructure in Nigeria.

According to the firm, the ratings were reaffirmations from the rating agencies, signaling their confidence in its state.

In a statement from InfraCredit, GCR was quoted as saying, “The rating is underpinned by the uniqueness of InfraCredit’s operations as a credit guarantee provider, and the company’s strong capitalisation, liquidity, and asset quality position, albeit counterbalanced by its self-regulated status.

“Notably, InfraCredit posts a strong financial profile score of 5.25, one of the highest in the financial services industry underpinned by the firm’s growing capital buffers, liquidity, and broader balance sheet strength, which are complemented by the sound governance and risk management culture.

“InfraCredit grew its core capital by 64 per cent within the review period following equity investments of InfraCo Africa and retained earnings.”

According to Agusto, the rating took note of the technical, governance and capital support extended by the shareholders as well as GuarantCo Management Company Limited, the callable capital provider.

Agusto further said, “The rating assigned also reflects the quality of InfraCredit’s guarantees and investment portfolios backed by an acceptable risk management framework, good return on investments during the year and an experienced management team.”

Also commenting on the ratings, InfraCredit’s Managing Director and Chief Executive Officer, Chinua Azubike, said, “The simultaneous affirmations of InfraCredit’s AAA rating, with a stable outlook, by Agusto and GCR is a validation of our balance sheet capacity and more importantly the credibility of our guarantee instruments.”

Azubike added that the company would continue to leverage its unique capabilities and innovative approach in deepening the debt capital markets for infrastructure finance in the country.