Rating Release
Agusto & Co. assigns “Aa(Ken)” (long term) and “A1+(Ken)” (short term) ratings to Dhamana Guarantee Company Limited (“Dhamana Guarantee” or “DGC” or “the Company”) with a stable outlook.
The rating expires on 30 June 2027.
Agusto & Co. assigns “Aa(Ken)” (long term) and “A1+(Ken)” (short term) ratings to Dhamana Guarantee Company Limited (“Dhamana Guarantee” or “DGC” or “the Company”). The ratings reflect Dhamana Guarantee’s pioneer status in the East African credit enhancement space, strong support of the shareholders – InfraCo Africa Investment Limited (“InfraCo Africa”), African Development Bank (“AfDB” rated “Aaa” by S&P, Fitch, Moody’s and JCR), the County Pension Fund (CPF) and Africa Finance Corporation (“AFC” rated “Aa” (FCY rating) by Agusto & Co.) and good capitalisation. Given DGC’s limited operating track record, we have placed greater reliance on the strength and support of the Company’s sponsors in assigning the ratings. The ratings also considered the $20 million contingent capital facility from GuarantCo Limited (rated “A1” by Moody’s and “Aa-” by Fitch). DGC’s low leverage and experienced management team are additional positive rating factors. However, the ratings are constrained by the limited track record, as reflected in the portfolio concentration and low profitability that requires improvement.
We have also attached a “3” ESG score to the rating, reflecting our view that environmental, social and governance issues have a material impact on the credit profile of the Company.