Agusto & Co. hereby maintains the “Bbb” rating assigned to Credit Direct Limited.
The rating expires on 30 June 2023.
Agusto & Co. hereby maintains the “Bbb” rating assigned to Credit Direct Limited (“Credit Direct”, “CDL” or “the Company”). The rating reflects CDL’s good capitalisation, good profitability, low leverage, satisfactory asset quality, competent and experienced management team and our internal assessment of the FCMB Group. The rating is, however, constrained by the considerable exposure to public sector employees (which makes the Company vulnerable to the finances of the government), concentration in the funding base and funding mismatch. We have also considered the impact of the weak finances of the Federal Government of Nigeria on CDL’s operations.
Credit Direct provides micro-lending services primarily to public sector employees at the federal and state-government levels. The Company offers unsecured, short-term micro-loans to customers across the country by leveraging the nationwide branch network of FCMB Limited.