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).