Credit Risk Management

Agusto & Co has developed a number of products and solutions to assist banks and other credit institutions to effectively manage credit and financial risk.

Our flagship product, the Credit Risk Model Application © (CRMA), is an automated risk rating software, which makes use of our proprietary rating models for obligors, facilities and industries. Some of the largest and most profitable Nigerian banks have benefited from our services through streamlining of credit processes and the implementation of rating systems.

The rating models available with this application include:

The Industry Rating Models:

These were first developed in 1992 and modified in 2010. This model uses macroeconomic data as well as aggregated financial information on key industry players (where available).

The Corporate Rating model:

This was first developed in 1992 and modified in 2010. This model requires 3 years of reliable audited financial statements. Agusto & Co. provides guidelines on how to determine reliability.

The Commercial Rating model:

This was first developed in 2006 and tailored to suit the Nigerian operating environment. It provides risk ratings for companies where financial data is deemed to be less reliable, by placing greater emphasis on business fundamentals.

The Facility Rating model:

This was developed in 2010, drawing from Agusto & Co.’s wealth of knowledge and expertise in this area. In computing the facility risk rating, we take the specific characteristics of the facility/transaction into account. In so doing, the rating captures the impact of the exposure at risk and loss given default; making it the ideal complement to the obligor credit risk rating.

Features of CRMA include :

Web enabled:

Centralised risk management tool, easily deployed and accessed from multiple sites by many users

Intuitive:

Has an easy to use interface

Centrally Administered:

Permissions for inputting data and authorizing risk reports are controlled centrally by the administrator

Able to compute Financial ratios and credit/facility ratings:

Generate soft copies of financial data and credit/facility ratings

Other credit risk management solutions

In addition to the risk rating and pricing models, we have a number of other solutions available in the area of credit risk management. These include:

Portfolio analysis/Rating Validation

Portfolio analysis involves the review and analysis of a representative sample of the credit institution’s loan book using Agusto & Co’s risk rating models. Specifically, we will:

  • Review a sample set of the Bank’s loan portfolio and assign ratings to these obligors
  • Produce a two page report on each obligor in the sample
  • Analyse the loan portfolio based on ratings, classifications and adequacy of provisions

Policy and process review

The objective of this solution is to complete a full diagnostic review of the Credit institution’s financial risk management policies and procedures; in order to develop systems, processes and produce policy documents.

Portfolio planning

Here we can assist the credit institution in planning its loan portfolio in terms of:

  • Target portfolio mix :
    • By industry
    • By obligor
    • By facility type
  • Risk based pricing
  • Target weighted average risk rating for the bank
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Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Fewchore Finance Company Limited Bbb/A2 Jun 30 , 2026 Stable Nigeria
Credit Direct Finance Company Limited Bbb+ Jun 30 , 2026 Stable Nigeria
LECON Finance Company Limited A+ Jun 30 , 2026 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Limited Aa- Jun 30 , 2026 Stable Nigeria
Zeenab Foods Limited A Jun 30 , 2026 Stable Nigeria
Nigerian Breweries PLC A+ Jun 30 , 2026 Stable Nigeria
Premium Cocoa Products (Ile-Oluju) Limited Bbb Jun 30 , 2026 Stable Nigeria
MTN Nigeria Communication PLC Aa+ Jun 30 , 2026 Stable Nigeria
Cutix PLC Bbb+ Oct 31 , 2026 Stable Nigeria
Johnvents Industries Limited Bbb+ Jun 30 , 2026 Stable Nigeria
Payaza Africa Limited Bbb Jun 30 , 2026 Stable Nigeria
NGN Gram Limited Bbb Jun 30 , 2026 Stable Nigeria
Food Concepts PLC A Jun 30 , 2026 Stable Nigeria
Odu'a Investment Company Limited  Aa- Jun 30 , 2026 Stable Nigeria
UAC of Nigeria PLC A- Jun 30 , 2026 Stable Nigeria
Vitafoam Nigeria Plc A Mar 31 , 2026 Stable Nigeria
Lagos Free Zone Company Bbb Jun 30 , 2026 Positive Nigeria

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Funding 1 PLC's ₦16.4 billion Bond Aa- Apr 12 , 2026 Stable Nigeria
Axxela Funding 1 PLC's ₦11.5 Billion Bond Aa- May 20 , 2026 Stable Nigeria
NEN Infrastructure Limited's ₦17.1 Billion Bond A May 31 , 2026 Stable Nigeria
NEN Infrastructure Limited's ₦40.975 Billion Bond A- Mar 22 , 2026 Stable Nigeria
Aradel Holdings PLC's  ₦10.318 billion Bond Aa Jun 30 , 2026 Stable Nigeria
MTN Nigeria Communications PLC’s ₦110,001,000,000 Series 1 Bond Aa+ Apr 30 , 2026 Stable Nigeria
LFZC Funding SPV PLC’s ₦25 billion Bond Aaa Mar 16 , 2026 Stable Nigeria
NCNI Limited's ₦13.2 Billion Bond A Feb 01 , 2026 Stable Nigeria
GPC-SPV Company PLC Aaa Nov 23 , 2025 Stable Nigeria
PAT Digital Infra Fund SPV PLC Aaa Feb 02 , 2026 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria