Rating Release
Agusto & Co. hereby assigns a ‘Bbb-’ rating to Finceptive Limited with a stable outlook.
The rating expires on 30 June 2025.
Agusto & Co hereby assigns a ‘Bbb-’ rating to Finceptive Limited (“Finceptive” or “the Company”). The rating reflects Finceptive’s good profitability, adequate capitalisation and low level of delinquencies in the loan book which is supported by the strategy of lending to vendors of bluechip companies, to enhance efficiency in collection. However, the rating is constrained by the Company’s aggressive loan book growth in an adverse economic climate, reliance on short-term expensive funds and sizeable exposure to unrated counterparties in the short-term placements’ portfolio. We also note that Finceptive’s funding options are somewhat restricted given the limited track and the non-membership under the deposit insurance scheme of the Nigeria Deposit Insurance Corporation (NDIC). In addition, the lack of regulatory oversight afforded by a licence from the Central Bank of Nigeria (CBN) is a rating constraint. The macroeconomic challenges
plaguing Nigeria also constrain the rating.
