Agusto & Co. Assigns A-(f)’ rating to Cordros Money Market Fund

Nigeria’s first credit Rating Agency and a pan African leader in credit reports, Agusto & Co. limited whose strong credibility presence and ratings are globally accepted in Nigeria, and across the globe has just assigned an “A- (f)” rating to Cordros Money Market Fund.
The rating assigned to Cordros Money Market Fund (“Cordros MMF” or “the Fund”) reflects the Fund’s adequate investment and risk management processes. In the review period (February 2019 – January 2020), the Fund had good credit quality of underlying investments (minimum ‘Bbb’ rating) and maintained low exposure to interest rate risk by adhering to the 90-day WAM limit. However, Cordros MMF’s exposure to credit risk was moderate with a significant portion of the Fund’s net assets skewed towards the minimum acceptable rating of ‘Bbb’. Nonetheless, we note that the Fund Manager has an effective internal credit appraisal model that supports the assessment of potential counterparties. We, therefore, consider the Fund’s exposure to credit risk moderate.
Cordros MMF’s net assets grew by 57% over the review period with moderate concentration risk on its asset holding base. In addition, the Fund’s operations are supported by the Symplus software and the bespoke CORDFLOW software of the Fund Manager, which is sufficient for Cordros MMF’s level of activities.

We, therefore, affirm the ‘A-(f)’ rating assigned to Cordros MMF. The rating expires on 28 February 2021. Funds rated ‘A-(f)’ are deemed to have low to moderate exposure to downside risk (impairment of net asset value) in the medium term.




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