Rating Release 

Agusto & Co. hereby affirms the “A-” (long term) and “A1” (short term) ratings of Lotus Capital Limited (“Lotus Capital”, “LCL” or “the Company”) with a stable outlook. 

The rating expires on 30 June 2027 

Agusto & Co. hereby affirms the “A-” (long term) and “A1” (short term) ratings of Lotus Capital Limited (“Lotus Capital”, “LCL” or “the Company”). The ratings reflect LCL’s good capitalisation and leverage metrics and strong asset quality, characterised by minimal non-performing advances. The ratings are also underpinned by Lotus Capital’s strong brand in the non-interest finance segment, experienced management team and sizeable low-cost funding from the principal shareholder. However, the ratings are constrained by the high concentration in the ownership structure, concentration in the finance & advance portfolio and the sizeable contribution of share of profit from its associate to earnings, which introduces volatility to profitability metrics. We have also considered the impact of the rising competition from non-interest banks and non-interest windows of other financial institutions and the prevailing macro environment on the Company’s operations.

Lotus Capital provides Sharia-compliant asset management, private wealth management, and structured finance solutions to retail clients, high-net-worth individuals (HNIs), and institutional investors in Nigeria.