Rating agency, Global Credit Ratings (“GCR”) re-affirmed the “AAA” credit rating of Infrastructure Credit Guarantee Company Limited (“InfraCredit”), for the seventh (7th) consecutive time with stable outlook.

In re-affirming InfraCredit’s AAA rating, GCR emphasized InfraCredit’s strategic role as an infrastructure credit guarantee provider in Nigeria, with a “complete not compete” competitive business nature. The rating recognizes InfraCredit’s strong capital and leverage position, sound risk profile, robust funding and liquidity.

“InfraCredit’s risk position is also a positive rating factor, underpinned by stringent underwriting criteria and the absence of any called guarantee, resulting in no recourse to InfraCredit to date”, the rating agency reported. GCR further accorded the rating to InfraCredit’s stable management team, with a sound risk and portfolio management experience.

The rating agency also highlighted how InfraCredit has progressed well with its mandate delivery, evidenced in the sustained growth in outstanding guaranteed portfolio to NGN203 billion (USD152.6 million) as of 31 March 2024 from NGN191.8 billion (USD213.3 million) in 2023, and NGN120 billion (USD267.5 million) in 2022, spread across prioritised and eligible sectors.

Looking ahead, GCR records its high expectations for InfraCredit to encounter sustained business scaling given a pipeline of guaranteed transactions estimated at NGN627.6 billion (USD471.4 million).

InfraCredit’s funding structure is also recognized by GCR to be stable, comprising equity, preference shares and long-term subordinated borrowings from international DFIs.

GCR further indicated that InfraCredit’s competitive position assessment is also supported by a relatively strong Environmental, Social and Governance (ESG) implementation and monitoring, which includes ESG assessments for guaranteed entities and providing additional market access to lower quality corporates.

The rating agency, more importantly, positively recognises the progress made in InfraCredit’s clean energy transition within the power sector portfolio and the milestones achieved over the last three years.