Rating Release

Agusto & Co. hereby assigns a long term ‘A-’ rating and a short term “A1” rating to Lagos Building Investment Company Plc. 

The rating expires on 30 June 2027. 

Agusto & Co. hereby assigns a long-term rating of “A-” and a short-term rating of “A1” to Lagos Building Investment Company Plc (“LBIC” or “the Mortgage Bank”). The ratings reflect LBIC’s strong capitalisation, good profitability, healthy liquidity profile, low leverage position and experienced management team. The ratings are also upheld by the support the Mortgage Bank receives from the Lagos State Government (LASG). However, LBIC’s ratings are constrained by the limited contribution of core mortgage lending activities to income, exposure to refinancing risks, and potential for government-related influence due to LASG’s position as the largest shareholder. Our assessment also factors in the fragile macroeconomic environment in Nigeria, including persistently high lending rates, which continue to adversely affect the affordability and appeal of mortgages to borrowers, as well as placing pressure on mortgage lenders.