Rating Release

Agusto & Co. assigns a ‘Bbb’ rating to NGN Gram Limited, with a stable outlook 

The rating expires on 30 June 2026. 

Agusto & Co. hereby assigns a “Bbb” rating to NGN Gram Limited (“Nairagram”, “NGNGRAM” or “the Company”). The assigned rating reflects the Company’s satisfactory financial condition, underpinned by the adequacy of its liquidity positions, a balanced capital structure and the pre-funding model which support seamless transaction processing and payouts across its network. Also, the rating considers the Company’s receivable-driven settlement structure, which aligns cash inflows and outflows, while mitigating funding pressures associated with maintenance of float with its pay-out partners. Nonetheless, the rating is constrained by Nairagram’s escalating financial risks, indicated by an elevated debt service burden. Given the susceptibility of Fintech operations to fraud, terrorism financing and money laundering, the rating incorporates our general concerns with the robustness and agility of Nairagram’s risk management framework to comprehensively deal with these risks. In addition, the rating is moderated by foreign exchange risks associated with the Company’s currency swap services amid an unpredictable macro-economic environment. Furthermore, the rating highlights business sustainability concerns due to the absence of a codified succession planning policy.

NGN Gram Limited is a digital financial services business, established on 28 June 2016. The Company specialises in facilitating cross-border money transfers, particularly to and within Africa, relying on its robust programming infrastructure integrated with leading global money transfer operators. As at 31 December 2024, Nairagram’s network connections spanned over 37 African countries. Also, the Company benefits from an ecosystem that includes 689 banks, 104 mobile wallets and over 72 payment partners. The Company plans to expand its services to new markets and also introduce bill collections to its range of offerings. If well executed, we expect these initiatives to improve NGNGRAM’s transaction volume and drive future revenue growth.