FBNQuest Asset Mgt Gets Issuer Rating of “A+”, Stable Outlook

DataPro, the technology-driven credit rating agency has assigned FBNQuest Asset Management Limited a long-term rating of “A+” with a Stable Outlook for the year 2023/2024.

The rating agency, in its latest report issued on Tuesday, explained that considerations for the rating assigned include the company’s profitability, investments, liquidity, asset management, capital adequacy, corporate governance, and risk management as well as its risk factors.

The report signed by DataPro’s Client Services Manager, Kehinde Rasheed, and made available to THISDAY disclosed that FBNQuest Asset Management Limited earnings were derived from portfolio management fees from a diverse range of portfolios, funds, and investment

solutions. 

“As of the financial year-end 2022, profits plowed back into the business accumulated to N5billion. Consequently, overall equity was strengthened by 22 per cent as against the prior year (21 per cent).

“The company invested in various financial assets measured at fair value through profit or loss (FVTPL), amortised cost, and fair value through other comprehensive income (FVTOCI),” the report stated.

It added that the value of these investments was N5.7 billion, representing a 28 per cent growth during the year.

Further analysis showed that financial assets at amortised cost accounted for the largest portion of the total investments.  This, the report stated, represented 64 per cent (Yr. 22) of the financial assets and grew by 96 per cent (Yr. 22).

“A+” indicates low risk. It shows very good financial strength, operating performance, and business profile when compared to the standard established 

by DataPro. This company, in our opinion, has a strong ability to meet its ongoing 

obligations,” the report said.

Rasheed explained further that the short-term rating of “A1” indicates good credit quality and satisfactory capacity for timely payment of financial commitments.