Rating Release
Agusto & Co. hereby affirms “Bbb” rating assigned to Infinity Microfinance Bank Limited with a stable outlook
The rating expires on 30 June 2026
Agusto & Co. affirms the “Bbb” rating assigned to Infinity Microfinance Bank Limited (“the MFB” or “Infinity MFB”). The rating reflects Infinity MFB’s good capitalisation, low leverage, good asset quality and experienced management team. However, the rating is constrained by the MFB’s concentration in borrowed funds, rising reliance on high-cost term deposits, high loan-to-deposit ratio which constrains financial flexibility and subpar profitability. We have also considered the impact of the challenges in the macro environment on cost of operations and stiff competition from digital lenders and other credit providers.
Infinity MFB is a licensed state microfinance bank operating in Lagos State. The MFB provides microfinance services including short-term micro loans, leases, hire purchase facilities, savings and deposits to the underbanked.
