Agusto & Co. affirms the “Bbb” rating assigned to Baobab Microfinance Bank Limited.
The rating expires on 30 June 2020.
The rating of Baobab Microfinance Bank Limited (“Baobab” or “the MFB”) is underpinned by good profitability, strong sponsors’ support and a stable management team. However, the rating is tempered by an unfavourable economic climate and high cost of operations.
Baobab Microfinance Bank Limited is a subsidiary of the Baobab Group (‘Parent Company’ or ‘the Group’), an investment company created by PlaNet Finance (an international non-governmental organization dedicated to the development of microfinance worldwide). Other investors in the Baobab Group include International Finance Corporation (IFC), AXA Group and the European Investment Bank (EIB). The Group, headquartered in France, was created with the purpose of improving financial inclusion in Africa and Asia. The MFB’s Parent Company has footprints in China, Senegal, Zimbabwe, Nigeria, Madagascar, Ivory Coast, Mali, Tunisia, Tanzania, DR Congo and Burkina Faso.
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