Agusto & Co. affirms the ‘Bbb’ rating and a stable outlook assigned to Credit Direct Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby maintains the “Bbb” rating assigned to Credit Direct Limited (“Credit Direct”, “CDL” or “the Company”). The rating reflects the Company’s good and consistent profitability, competent and experienced management team, low leverage and strong support from the FCMB Group. However, the rating is constrained by Credit Direct’s high susceptibility to the finances of government at federal and state levels, elevated non-performing loan (NPL) ratio and considerable funding mismatch. We have also considered the impact of the challenges in the macro environment on CDL’s operations.
Credit Direct is a wholly owned subsidiary of FCMB Group Plc. The Company primarily provides salary-based micro credit to public sector employees at the federal and state levels.