Rating Release 

Agusto & Co. hereby affirms the “Bbb-” long term and “A3” short term ratings of Advans La Fayette Microfinance Bank Limited, with a stable outlook. 

The rating expires on 30 June 2026

 Agusto & Co. hereby affirms the “Bbb-” long term and “A3” short term ratings of Advans La Fayette Microfinance Bank Limited (“Advans MFB”, “ALFMFB” or “the MFB”). The ratings reflect Advans MFB’s diverse ultimate ownership structure, good liquidity profile and strong support from international financial institutions with extensive experience in promoting financial inclusion in emerging markets. However, the ratings are constrained by the increased non-performing loans ratio attributable to aggressive loan book growth and weakened profitability metrics due to the low net interest spread given the heavy reliance on expensive term deposits and borrowings. We have also considered the macroeconomic headwinds and attendant challenges posed to Advans MFB’s operations.

Advans MFB is licensed by the Central Bank of Nigeria (CBN) to operate as national microfinance bank. The MFB provides microfinance services in the form of loans and savings products to individuals, micro, small, and medium-sized enterprises (MSMEs) and agricultural producers. ALFMFB is part of an international microfinance group (“Advans Group”) focused on Africa, with headquarters in Luxembourg and operations in six countries: Cameroon, Ghana, the Democratic Republic of Congo, Côte d’Ivoire, Nigeria and Tunisia.