Agusto & Co. hereby maintains the ‘Bbb-’ rating assigned to LAPO Microfinance Bank Limited

Rating Category: Microfinance Banks

Agusto & Co. hereby maintains the ‘Bbb-’ rating assigned to LAPO Microfinance Bank Limited

Rating Release

Agusto & Co. hereby maintains the ‘Bbb-’ rating assigned to LAPO Microfinance Bank Limited

The rating expires on 30 June 2023.

Agusto & Co. hereby maintains the ‘Bbb-’ rating assigned to LAPO Microfinance Bank Limited (“the MFB” or “LAPO MFB”). The rating reflects LAPO MFB’s leading position in the microfinance industry, good liquidity and funding profile upheld by its branch network and retail affinity, low leverage and experienced management team. However, the rating is constrained by the MFB’s high non-performing loan (NPL) ratio, subpar risk management practice, concentration in ownership, high cost-to-income ratio and gaps in regulatory compliance. We have also considered the global and domestic macroeconomic challenges and the attendant impact on households and businesses.

LAPO MFB is the largest microfinance bank in Nigeria. The MFB provides a range of financial products and services including loans and savings to members of low-income households and micro, small and medium enterprises (MSMEs) in key sectors of the Nigerian economy. As at 31 December 2021, LAPO MFB had total assets of ₦95.5 billion.

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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