GDL, Mainstreet MFB, Meristem Fund, Gets New Agusto Ratings

Rating agency,- Agusto & Co, on Thursday released its latest ratings for GDL Asset Management Limited, Mainstreet Microfinance Bank Limited and Meristem Money Market Fund.
While the agency affirmed the “BBB (IM)” rating for GDL Management; assigned a “Bbb-” rating to Mainstreet MFB; while maintaining its “A+” rating assigned to Meristem Fund.
A statement by Agusto & Co. said the “Bbb-” rating to Mainstreet MFB is underpinned by its “good capitalisation, good profitability, satisfactory asset quality, satisfactory liquidity profile and a stable management team.
The rating, which expires on June 30, 2019 “is tempered by weak risk management practices around bank placements and manual loan approval and collection processes as well as a narrow funding base that restricts the ability of the MFB to effectively grow its loan book.”
On the “A+” rating assigned to Meristem Fund, which expires on July 25, 2019, the statement added, “reflects the stability of the Fund’s credit, market and liquidity profile, based on surveillance data provided to Agusto &Co.”
Funds rated ‘A+(f)’ are deemed to have low to moderate exposure to downside risk (impairment of net asset value) in the medium term.
The “BBB(IM)” rating for Growth and Development Asset Management Limited (previously known as Express Discount Asset Management Limited (EDAM), Agusto & Co noted, “is supported by the manager’s experienced & qualified decision-making committees, well established process for generation of research output and active monitoring of operational events and transactions.”
The rating which expires on June 14, 2019, the statement stressed, was constrained by key risks within the compliance unit and the relatively manual risk monitoring process.