The rating expires 30 June 2021.
Agusto & Co. assigns a ‘Bbb+’ rating to LAPO Microfinance Bank Limited (“LAPO MFB” or “the MFB”). The rating assigned to LAPO MFB is supported by adequate liquidity and funding profile, good capitalisation, the MFB’s dominant market position and experienced management team. However, the rating is constrained by high non-performing loans (NPLs), significant exposure to unrated financial institutions and the attendant deficiencies in risk management processes. The negative impact and lingering effect of the COVID-19 pandemic on the financial markets and Nigerian economy are also taken into cognisance.
LAPO MFB was established in 1987 as a subsidiary of a non-governmental organisation – Lift Above Poverty Organisation (LAPO). LAPO MFB was incorporated as a limited liability company in 2007 and obtained the Central Bank of Nigeria’s (CBN) approval to operate as a state microfinance bank in 2010. In 2012, the MFB acquired a national microfinance licence, authorising operations in Nigeria’s 36 states and the Federal Capital Territory (FCT).
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