Agusto & Co. assigns “Bbb” rating to Parallex Microfinance Bank Limited.
The rating expires on 30 June 2020.
The rating of Parallex Microfinance Bank Limited (“Parallex” or “the Bank”) is underpinned by strong sponsors’ support, strong market position and good liquidity profile. However, the rating is constrained by weak profitability, concentrated funding base and subpar risk management framework.
Parallex is one of nine national microfinance banks in Nigeria with total assets of ₦18 billion. Thus, the Bank ranks second in the microfinance industry. Parallex’s capitalisation is good for current business risks, with a capital adequacy ratio of 24% as at 31 December 2018.
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