Rating Release 

Agusto & Co. hereby upgrades Alert Microfinance Bank Limited’s (“Alert MFB” or “the Company”) ratings to “Bbb-” (long term) and “A3” (short term) with a stable outlook. 

The rating expires on 30 June 2027 

Agusto & Co. hereby upgrades Alert Microfinance Bank Limited’s (“Alert MFB” or “the MFB”) ratings to “Bbb-” (long term) and “A3” (short term). The upgrade reflects the MFB’s improved capitalisation and liquidity profile. The ratings are also supported by Alert MFB’s experienced management team and low non-performing loans to gross loans ratio in line with peers, upheld by the reliance on physical business visits and multiple levels of approval in its credit origination process. However, the rating is constrained by Alert MFB’s subpar profitability metrics due to high operating costs and low net interest spread, given the heavy reliance on expensive term deposits, as well as the aggressive growth of the loan book. We have also considered the macroeconomic headwinds and accompanying challenges posed to the MFB’s operations.

Alert MFB is licensed by the Central Bank of Nigeria (CBN) to operate as national microfinance bank. The MFB provides microfinance services in the form of loans, savings and working capital solutions to low-income individuals and micro, small and medium-sized enterprises (MSMEs).