Rating Release

Agusto & Co. hereby assigns a long term ‘Bbb+’ rating and a short term “A2” rating to Accion Microfinance Bank Limited. 

The rating expires on 30 June 2027. 

Agusto & Co. hereby assigns a long term ‘Bbb+’ rating and a short term “A2” rating to Accion Microfinance Bank Limited (“Accion MFB” or “the MFB”). The rating reflects the MFB’s low leverage, good liquidity and funding profile, experienced management team and strong support from an international microfinance group. However, the rating is constrained by Accion MFB’s high cost-to-income ratio and significant write-offs. We have also considered the macro environment which remains constrained by elevated inflation, high interest rates, weak consumer demand, regulatory uncertainty, security risks, and rising competition from Fintechs and digital credit providers, all of which continue to weigh on business performance and credit quality.