Rating Release

Agusto & Co. hereby downgrades the ratings assigned to LAPO Microfinance Bank Limited and LAPO MFB SPV Plc’s Series I and II bonds to “Bbb-’’ from the “Bbb+” ratings assigned in February 2022

The rating expires 30 June 2022

Agusto & Co. hereby downgrades the ratings assigned to LAPO Microfinance Bank Limited and LAPO MFB SPV Plc’s Series I and II bonds to “Bbb-’’ from the “Bbb+” ratings assigned in February 2022, with a validity period to 30 June 2022. The rating downgrade is thus based on the following:

• The extended delay in obtaining the Central Bank of Nigeria’s (CBN) approval for the 2020 audited financial statements.
• The delay in obtaining CBN’s approval for the appointment of the managing director and two other executive directors as well as the significant changes to the Board composition over the last two years.
• The deterioration in LAPO Microfinance Bank’s asset quality.

We will continue to monitor the rating to reflect operating realities.