Agusto & Co. hereby assigns a ‘Bbb+’ rating to Accion Microfinance Bank Limited
This rating expires 30 June 2023.
Agusto & Co. hereby assigns a ‘Bbb+’ rating to Accion Microfinance Bank Limited (“Accion MFB” or “the MFB”). The rating reflects the MFB’s good capitalisation, low leverage, good deposit mix, experienced management team and strong support from an international microfinance group. The rating is, however, constrained by Accion MFB’s high cost to income ratio, concentration in borrowings and elevated
NPL ratio. The global and domestic economic and security challenges have also been taken into consideration in arriving at the rating.
The MFB, which is one of nine national microfinance banks in Nigeria, primarily provides short-term credit facilities to micro, small and medium-sized enterprises. As at 31 December 2021, Accion MFB had total assets of ₦14.7 billion.