PACRA Maintains the Entity Ratings of GuarantCo Ltd

The assigned ratings of GuarantCo Ltd ("GuarantCo" or the "Company") reflect its strong ownership structure, underpinned by the Private Infrastructure Development Group (PIDG). PIDG is supported by seven leading development partners: UK Aid from the British People (FCDO), Australian Aid (DFAT), Sweden (SIDA), the Ministry of Foreign Affairs of the Netherlands (DGIS) and FMO, Global Affairs Canada (GAC), and SECO (Switzerland). The ratings derive strength from the ongoing financial commitment of these shareholders through formal support arrangements. During CY25 and YTD26, GuarantCo received equity injections totaling USD 12.4 million, which reinforced shareholder commitment, strengthened market confidence, and supported the Company's expanding guarantee capacity. During CY25, GuarantCo achieved financial close on a record 14 transactions with an aggregate value of USD 601 million, significantly exceeding the prior year's activity level. As a result, the active guarantee portfolio expanded by 26.7%, increasing from USD 855 million to over USD 1.1 billion by year-end. The Company further broadened its geographical footprint by entering Iraq and Mongolia, demonstrating its ability to extend its developmental mandate while maintaining portfolio diversification. Asset quality strengthened considerably during the year. Performing exposure improved from representing 72% of the portfolio at end-CY24 to representing 86% of the portfolio by end-CY25. The improvement reflects disciplined portfolio oversight, proactive restructuring initiatives, and successful recoveries. The Company also enhanced its risk management framework through the utilisation of SIDA re-guarantee facility and the implementation of a risk-based syndication framework aimed at mitigating future loss concentrations. GuarantCo reported a net profit of USD 0.9 million in CY25. While lower than the USD 5.3 million recorded in the previous year, the performance remained resilient despite a one-off impairment charge of USD 24 million, which was fully provisioned in anticipation of a likely guarantee call in 2026. The result underscores the Company's improving financial resilience and continued progress toward sustainable profitability. Revenue from guarantees and loans increased to USD 24.8 million, exceeding budget expectations due to higher business volumes and improved transaction structuring. The investment portfolio continues to follow a conservative capital preservation strategy and maintains a strong average credit quality of 'A'. The Company's liquidity profile remains a key rating strength. This is further supported by the USD 50m liquidity facility signed in 2025.
GuarantCo's ratings are dependent on its robust ownership structure and strong liquidity buffer. Prudent expansion, close monitoring of asset quality, and diligent management of internal obligor ratings remain critical to sustaining the ratings.

About the Entity
GuarantCo Ltd was established in 2005. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, Canada, through the PIDG Trust and a repayable facility, plus France through a stand-by facility.