Rating Release
Agusto & Co. hereby upgrades the rating assigned to LECON Finance Company Limited to “A+” with a stable outlook.
The rating expires on 30 June 2026
Agusto & Co hereby upgrades the rating assigned to LECON Finance Company Limited (“LECON” or “the Company”) to “A+” on account of improved governance and liquidity in the review year, and a more diversified lease portfolio aligning with its near-term strategy. LECON’s sound asset quality, good profitability, robust liquidity, low leverage and adequate capitalisation, which was bolstered by a capital injection also support the upgrade. In addition, the assigned rating factors in the strong support from the Company’s largest shareholder – Bank of Industry (BOI), which is rated “Aaa” on the national scale by Agusto & Co. Limited. BOI’s support is demonstrated by the capital and funding guarantees provided to LECON and the access granted to the DFI’s technical partners. However, the rating is constrained by LECON’s vulnerability to potential political interference, which could hinder governance and the achievement of strategic objectives, given its ultimate ownership by the Federal Government of Nigeria (FGN). The persistent macroeconomic challenges in Nigeria also continue to weigh on the rating.
