Rating Release

Agusto & Co. hereby assigns a ‘Bbb-’ rating to Advans La Fayette Microfinance Bank Limited with a stable outlook

The rating expires on 30 June 2024.

Agusto & Co. hereby assigns a “Bbb-” rating to Advans La Fayette Microfinance Bank Limited (“Advans MFB” or “the MFB”). The rating is supported by the MFB’s growing market share, adequate capitalisation, good liquidity profile, stable and experienced management team and strong support from Advans Group –a leading international microfinance group with operations in nine countries. However, the rating is constrained by the increased level of unseasoned obligors due to aggressive risk asset growth, rising non-performing loans, high cost-to-income

ratio and reliance on expensive purchased funds. We have also considered the impact of the challenges of Nigeria’s weak economy on Advans MFB’s operations.

Advans MFB is licensed by the Central Bank of Nigeria as a national microfinance bank. As at 31 December 2022, the MFB had total assets of ₦24.9 billion.