Rating Release 

Agusto & Co. hereby upgrades AG Mortgage Bank Plc’s (“AGMB” or “the Mortgage Bank”) ratings to “Bbb-” (long term) and “A3” (short term) with a stable outlook. 

The rating expires on 30 June 2027                                                 

Agusto & Co. hereby upgrades AG Mortgage Bank Plc’s (“AGMB” or “the Mortgage Bank”) ratings to “Bbb-” (long term) and “A3” (short term). The upgrade reflects the Mortgage Bank’s improved funding and liquidity profile supported by the concessionary funding scheme introduced to the mortgage banking industry by the Ministry of Finance Incorporated and its close ties to a prominent faith-based organisation in Nigeria. The ratings are also upheld by AGMB’s experienced management team and established track record of over 20 years in the Nigerian mortgage banking industry. However, the ratings are constrained by the Mortgage Bank’s subpar asset quality, low profitability metrics relative to its peer and concentration in ownership. We have also considered the impact of the elevated level of inflation and yields in the macro environment on mortgage lending.

AGMB is licensed by the Central Bank of Nigeria (CBN) to operate as a national primary mortgage bank (PMB). The Mortgage Bank provides residential and commercial mortgage loans, real estate development and construction financing and mortgage advisory services to individuals and corporates.