GCR Ratings (GCR) has upgraded Family Homes Funds Limited’s national scale long and short-term issuer ratings to A(NG) and A1(NG) from BBB+(NG) and A2(NG); with the Outlook revised to Stable from Positive. Concurrently, GCR has upgraded Family Homes Sukuk Issuance Programme Plc’s NGN10bn Series 1 and NGN20bn Series 2 respectively, with the Outlooks revised to Stable from Positive.
In its report, GCR states that the rating upgrade on FHFL reflects sustained growth trajectory in line with the company’s mandate of financing construction of affordable housing. The ratings also consider FHFL’s access to funding from the Federal Government of Nigeria (FGN) and Development Financial Institutions (DFIs) which support strong capitalisation, liquidity and a good risk profile.
The report further read; ‘’Our assessment of FHFL’s capital and leverage is positive to the ratings underpinned by good internal and external capital flow... Looking ahead, we expect the financial leverage ratio to remain strong over the next 12-18 months premised on continuous support from FGN. FHFL’s risk profile is positive to the rating, supported by sustained zero non-performing loans and credit losses of below 1% over the years. FHFL’s funding and liquidity assessment is positive to the ratings, supported by FGN’s capital grants, long-term capital market funds raised through its NGN30 billion Sukuk issuance programme as well as additional fundings from DFIs.’’
Reacting, the Managing Director of FHFL, Abdul Mutallab Mukhtar said, “We are thrilled by GCR’s recognition of our efforts. This rating upgrade stands as a testament to the hard work and dedication of our team in fulfilling our mandate to provide affordable homes for Nigerian families. It further reflects confidence in our financial stability and operational efficiency. We remain deeply committed to our mission and will continue to build on our strengths to make a lasting impact in the housing sector.’’
Editor’s Note
Family Homes Funds Limited (FHFL) is a Limited Liability Company with initial shareholding by the Federal Ministry of Finance Incorporated and the Nigeria Sovereign Investment Authority. The company aims to reduce Nigeria’s housing deficit by facilitating the development of affordable homes and advancing innovative paths to home ownership. In the process, the Company strives to spur the development of relevant skills, support the industry, and create jobs.
