Rating Release
Agusto & Co. affirms the “Aa-“ rating assigned to Impact Credit Guarantee Limited, with a stable outlook.
The rating expires on 30 June 2025.
Agusto & Co affirms an “Aa-” rating assigned to Impact Credit Guarantee Limited (“ICGL” or “the Company”) considering its status as the pioneer financial institution solely focused on providing credit guarantees to Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria through prequalified participating financial institutions (PFIs). The rating is anchored on the capital, governance, and technical support provided by the parent company; Development Bank of Nigeria Plc, rated “Aaa” by Agusto & Co. ICGL’s rating further underscores its good capitalisation, acceptable profitability given its supportive role to a key business segment of the economy and good quality of its investment portfolio. However, the rating remains constrained by the limited operating history, the rising volume of called guarantees with low recovery rates, portfolio concentration and the inherent susceptibility of the targeted segment to the prevailing macroeconomic headwinds. Furthermore, we have attached a ‘2’ ESG score to the rating which denotes that environmental, social, and governance factors have minimal impact on the Company’s credit risk profile.
