Agusto & Co. hereby assigns a ‘Bbb-’ rating to Abbey Mortgage Bank Plc (‘Abbey MB’, ‘AMB’ or ‘the Mortgage Bank’)

Rating Category: Mortgage Institutions

Agusto & Co. hereby assigns a ‘Bbb-’ rating to Abbey Mortgage Bank Plc (‘Abbey MB’, ‘AMB’ or ‘the Mortgage Bank’)

Rating Release

Agusto & Co. hereby assigns a ‘Bbb-’ rating to Abbey Mortgage Bank Plc (‘Abbey MB’, ‘AMB’ or ‘the Mortgage Bank’)

The rating expires on 20 June 2023.

Agusto & Co. hereby assigns a ‘Bbb-’ rating to Abbey Mortgage Bank Plc (“Abbey MB”, “AMB” or “the Mortgage Bank”). The rating is supported by AMB’s good capitalisation, experienced management team, strong commitment from shareholders, good level of provisioning for impaired loans and low leverage. However, the rating is constrained by the Mortgage Bank’s weak profitability, investments in unrated and speculative-grade counterparties, funding concentration and limited contingency planning. We also consider the impact of the significant uncertainty in the macro environment on the mortgage banking industry in Nigeria.

Abbey Mortgage Bank Plc was incorporated in 1991 and commenced business in 1992. AMB operates with a national primary mortgage bank licence from the CBN. The Mortgage Bank’s activities include the origination and servicing of residential mortgages, the provision of construction finance to real estate developers and investments in the money market. Abbey MB also offers deposit services to customers including current, savings and fixed deposit accounts.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.
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