Agusto & Co. hereby affirms the ‘A-’ rating assigned to AB Microfinance Bank Limited
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the ‘A-’ rating assigned to AB Microfinance Bank Limited (“ABMFB” or “the MFB”). The rating reflects the MFB’s good asset quality, adequate capitalisation, good liquidity profile, experienced management team and good profitability. However, the rating is constrained by the increased level of unseasoned obligors due to aggressive loan portfolio growth, concentration in borrowings and reliance on expensive time deposits. We have also considered the adverse impact of the volatile economic terrain on businesses and households in arriving at the rating.
The MFB is one of nine national microfinance banks licensed by the Central Bank of Nigeria (CBN). ABMFB provides deposit products and short-term credit facilities to micro, small and medium-sized enterprises (MSMEs) to meet working capital needs. As at 31 December 2022, the MFB had total assets of ₦32 billion.