Rating Release

Agusto & Co. hereby affirms the ‘Bbb+’ rating assigned to Accion Microfinance Bank Limited

 The rating expires on 30 June 2024.

Agusto & Co. hereby affirms the ‘Bbb+’ rating assigned to Accion Microfinance Bank Limited (“Accion MFB” or “the MFB”). The rating reflects the MFB’s good capitalisation, strong support from an international microfinance banking group, low leverage, good funding mix and its leading position in the microfinance segment. However, the rating is constrained by Accion MFB’s elevated non-performing loan (NPL) ratio, concentration in borrowings and placements and high cost-to-income ratio. We have also considered the volatile economic terrain, which has adversely affected businesses and households, as well as increased competition from Fintechs and payday loans operators in arriving at the rating.

The MFB is one of the leading microfinance banks in Nigeria. Accion MFB provides loans and savings product to underbanked Nigerians as well as small and medium enterprises. As at 31 December 2022, Accion MFB had total assets of ₦15.2 billion.