Rating Release
Agusto & Co. hereby assigns “Bbb-” long term and “A3” short term ratings to Homebase Mortgage Bank Limited with a stable outlook.
The rating expires on 30 June 2026
Agusto & Co. hereby assigns “Bbb-” long term and “A3” short term ratings to Homebase Mortgage Bank Limited (“Homebase Mortgage Bank” or “the Mortgage Bank”). The ratings reflect Homebase Mortgage Bank’s good capitalisation, acceptable asset quality, experienced management team and strong support from financing partners. However, the rating is constrained by the Mortgage Bank’s subpar profitability relative to peers, concentration in the funding base and low contribution of the core business to total income. We have also considered Homebase Mortgage Bank’s ability to navigate the impact of the elevated interest and inflation rates in Nigeria on mortgage lending in the near to medium term.
Homebase Mortgage Bank is licensed by the Central Bank of Nigeria (CBN) as a state primary mortgage bank to operate in Lagos State. The Mortgage Bank’s strategic goal is to transition into a national mortgage bank and become one of the leading promoters of home ownership across the major cities in Nigeria.