Agusto & Co. hereby assigns a “Bbb-” rating to DLM Capital Group Limited
The rating expires on 30 June 2023.
Agusto & Co. hereby assigns a “Bbb-” rating to DLM Capital Group Limited (‘DLM’ or ‘the Group’). The rating reflects DLM’s strong brand and expertise in structured credit, low non-performing loan ratio, significant market share in the structured debt market, low leverage and competent and experienced management team. The rating is, however, constrained by concentration in the Group’s placement
and corporate lending portfolios, sizeable exposure to speculative grade and unrated counterparties, weak capitalisation of two strategically important subsidiaries and subpar funding and liquidity profile. We have also considered the significant uncertainty in the domestic economic environment, which has adversely affected businesses and households.
DLM is a financial services group that offers asset management, securities trading, trusteeship and advisory services to high net-worth individuals (HNIs), institutional investors, retail clients and corporates. The Group, which comprises seven operating entities, includes a finance company and a microfinance bank licensed by the Central Bank of Nigeria (CBN) to provide structured finance credit facilities to mid-corporates and salary-backed loans largely to employees in the public sector. As at 31 December 2021, DLM had total assets of ₦24.2 billion. Loans & advances made up the largest share (39.9%) of the Group’s total assets.