Rating Release

Agusto & Co. hereby affirms the “Bbb-” rating assigned to Fewchore Finance Company Limited with a stable outlook

The rating expires on 30 June 2025

Agusto & Co. hereby affirms the “Bbb-” rating assigned to Fewchore Finance Company Limited (“Fewchore Finance”, “FFCL” or “the Company”). The rating reflects Fewchore Finance’s considerably low non-performing loans to gross loans ratio relative to peers driven by the focus on originating quality loans and implementing repayment and collateral structures to ensure loan collections and recovery. The rating is also supported by FFCL’s experienced management team and improving brand equity evidenced by the enhanced funding base and liquidity position. However, the rating is constrained by the Company’s low profitability due to relatively thin lending margins and concentration in loans and borrowings. We have also considered the impact of elevated inflation and interest rates on businesses operating in the finance company industry.

Fewchore Finance is an emerging player among Central Bank of Nigeria (CBN)-licensed finance companies, accounting for a relatively notable 2.8% of the industry’s loan book size as at the 2023 FYE. FFCL provides an array of credit facilities, including consumer loans, business loans, local trade finance and working capital loans to individuals and mid-sized businesses. The Company also offers high-yield investment products to retail clients, institutional investors and high net-worth individuals (HNIs) to drive funding for loan origination.