Rating Release
Agusto & Co. hereby upgrades the “A+(ken)” and “Aa-(ngr)” national scale ratings assigned to Shelter Afrique (“SHAF” or “the Company”) to “Aa-(ken)” and “Aa(ngr)” with a stable outlook.
The rating expires on 30 June 2026
Agusto & Co. hereby upgrades the “A+(ken)” and “Aa-(ngr)” national scale ratings assigned to Shelter Afrique (“SHAF” or “the Company”) to “Aa-(ken)” and “Aa(ngr)” with a stable outlook. This upgrade is driven by the enhanced equity position, following the approval of the Arab Bank for Economic Development in Africa (BADEA’s) US$120 million facility that will support SHAF’s strategic growth initiatives. The rating upgrade is also based on the Company’s multilateral ownership by 44 African governments and its core mandate to support affordable housing development across the continent. We have also considered the impending treaty-based establishment of Shelter Afrique Development Bank (SHAFDB) which should raise SHAF to a preferential creditor status and forestall the inconsistent capital contributions from the member countries in the medium term. The Company’s low leverage and adequate capitalisation profiles also support the ratings’ upgrade. However, SHAF’s ratings remain constrained by low profitability and weak asset quality which has been negatively impacted by legacy delinquent loans.
