Asset management affirmed firm ‘A’ rating, stable outlook

Global Credit Rating Co (GCR) has affirmed SFS Capital’s long-term credit rating ‘A’ with a stable outlook.

It equally affirmed the asset management company, short-term credit rating ‘A2’, having both ratings show a stable outlook, reaffirming strength and stability.

It stated that the firm’s strong financial performance, reinforced by its expertise in Real Estate Investment Trust (REIT) management, a sound earnings profile and a solid balance sheet with prudent leverage and cash flow metrics paved the way for the positive rating.

GCR reviewed that the rating reaffirms strength and stability, demonstrating an impressive core corporate profitability margin of 40 per cent for the year ending December 31, 2023 and underscoring its capability to generate stable and substantial earnings.

On the ungeared balance sheet, it stated that the firm’s balance sheet remained unleveraged, providing a stable financial foundation and supporting its robust liquidity profile.
It stated that its expertise in REIT management, also made the firm recognised for its proficiency in managing REITs, significantly contributing to its competitive position in the asset management sector.

On the strategic initiatives and growth prospects, GCR stated that while SFS Capital holds a moderate competitive position due to its limited scale and fundholder concentration, the stable outlook underscored expectations for continued conservative financial management and the successful expansion of its REIT funds.

According to GCR, the anticipated launch of a dollar-denominated fund is poised to further enhance SFS Capital’s financial profile and market position, offering new opportunities for growth and diversification.

Thrilled with the affirmation of the credit ratings by GCR, Managing Director of SFS Capital, Patrick Ilodianya, said: “These ratings are a testament to our unwavering commitment to financial stability, superior performance, and strategic growth. We are focused on enhancing our market position through innovative products and services that meet the evolving needs of our clients and investors. Our upcoming dollar-denominated fund is just one example of how we are diversifying our offerings to provide even greater value and opportunities for our stakeholders.”