Rating Release

The rating expires 30 June 2021.

Agusto & Co. affirms the “Bbb+” rating assigned to the Series I ₦3.15 billion 5-year fixed rate bond (‘the Issue’ or ‘the Bond’) of LAPO MFB SPV Plc (‘LAPO SPV’ or ‘the Issuer’). The Bond is part of the Issuer’s ₦20 billion debt issuance programme. The rating mirrors the standalone rating of LAPO Microfinance Bank Limited (‘LAPO MFB’ or ‘the Sponsor’) issued by Agusto & Co. Limited.

The Sponsor’s rating reflects its dominant market position, good capitalisation, adequate liquidity and funding profile. The rating, however, is constrained by high non-performing loans, attendant deficiencies in risk management processes and significant exposure to unrated financial institutions. The negative impact of the COVID-19 pandemic on the business activities and the weak macroeconomic environment are also rating concerns.