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Monday, March 27, 2023

GCR Places Chrisland School’s Proposed SPV Bond Issue’s on Rating Watch Negative

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GCR Ratings (“GCR”) has placed the national scale long term indicative Issue rating of A-(NG)(EL)(IR) accorded to Chrisland School Funding SPV Plc’s Series 1 Senior Secured Bond (“the Bond”) on Rating Watch Negative.

The Issuer is in the process of registering a N15bn Bond Issuance Programme (“the Programme”) with Securities and Exchange Commission and expects to issue up to N6bn in Series 1 Secured Bond under the Programme, with a five-year tenor.

This follows the recent adverse development at one of the school units of the Bond Sponsor, Chrisland Schools Limited, leading to the shutting down of the School indefinitely by Lagos State Government.

GCR will closely monitor the development and assess the impacts on the Bond rating. We anticipate resolving the rating watch when we get more information regarding the legal, reputation and financial risks facing the School.

The Lagos State government has closed down all Chrisland Schools in the state over the alleged molestation of a 10-year-old female pupil of the school.

The student was allegedly raped during a Dubai trip organised by the school, as captured in a video, an incident that has continued to generate outrage.

The girl’s mother had also in a video obtained by Moneycentral, alleged that the school attempted to cover up the incident.

GCR Ratings also placed the national scale long term and short term Issuer ratings of A-(NG) and A2(NG) accorded to Chrisland Schools Limited on Rating Watch Negative.

Chrisland School Funding SPV Plc was incorporated as a special purpose vehicle with the sole object of raising debt capital through bond issuances for the purpose of purchasing the notes issued by the Sponsor, Chrisland Schools Limited.

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