Agusto & Co. hereby assigns an ‘A-’ rating to AB Microfinance Bank

Rating Category: Microfinance Banks

Agusto & Co. hereby assigns an ‘A-’ rating to AB Microfinance Bank

Rating Release

Agusto & Co. hereby assigns an ‘A-’ rating to AB Microfinance Bank (“the MFB”, or “ABMFB”), with a stable outlook.

The rating expires on 30 June 2023

Agusto & Co. hereby assigns an ‘A-’ rating to AB Microfinance Bank (“the MFB”, or “ABMFB”). The rating reflects the MFB’s good profitability, good asset quality, adequate capitalisation, good liquidity profile, low leverage and experienced management team. However, the rating is constrained by concentration in deposits and borrowings, the reliance on expensive time deposits and the increased level of unseasoned obligors due to aggressive risk asset growth. We have also considered the volatile economic terrain, which has adversely affected businesses and households, in arriving at the rating.

The MFB is one of nine national microfinance banks in Nigeria. ABMFB provides micro banking services, in the form of credit and savings products, to traders, entrepreneurs and micro, small and medium-sized enterprises (MSMEs).

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.
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