Rating Release 

Agusto & Co. hereby upgrades Fewchore Finance Company Limited’s ratings to “Bbb”(long term) and “A2” (short term), with a stable outlook. 

The rating expires on 30 June 2026 

Agusto & Co. hereby upgrades Fewchore Finance Company Limited’s (“Fewchore Finance”, “FFCL” or “the Company”) ratings to “Bbb”(long term) and “A2” (short term). The upgrade reflects the Company’s adequate capitalisation metrics sustained by steady profit retention and improving funding profile with multiple commercial paper issuances in the money market and enhanced access to funding from development finance institutions (DFIs) and retail investors in the review year. The rating is also supported by Fewchore Finance’s satisfactory asset quality reflected in its low non-performing loans to gross loans ratio relative to peers, upheld by well-structured transaction arrangements to ensure payment and its experienced management team. However, the rating is constrained by FFCL’s low profitability due to low net interest spread given the reliance on expensive wholesale funding, skewness of funding mix to few HNI and institutional investors and susceptibility to key man risk given the Managing Director’s dominant shareholding and central role in management. We have also considered the impact of the elevated level of inflation in the macro environment and yields in the financial market on the Company’s business.

Fewchore Finance is licensed by the Central Bank of Nigeria (CBN) to operate as a finance company. The Company offers a diverse range of credit products, including consumer loans, local trade finance, invoice discounting, working capital facilities, and asset financing, to individuals and mid-sized businesses.