Rating Release 

Agusto & Co. hereby upgrades LECON Finance Company Limited’s ratings to “Aa-” (long term) and “A1+” (short term) with a stable outlook. 

The rating expires on 30 June 2027 

Agusto & Co. hereby upgrades LECON Finance Company Limited’s (“LECON” or “the Company’) ratings to “Aa-” (long term) and “A1+” (short term). The upgrade reflects the significant improvement in profitability, supported by the Company’s strong asset quality profile, as evidenced by nil non-performing exposures. The rating also reflects continued support from its largest shareholder – Bank of Industry, which is rated “Aaa” on the national scale by Agusto & Co. This support is demonstrated through steady capital injections and funding guarantees provided to LECON, as well as access to the DFI’s technical partners. The rating is supported by the Company’s good capitalisation and low leverage. This is further upheld by LECON’s robust liquidity position and risk management framework. However, the rating is constrained by the significant concentration in the Company’s finance lease assets. We have also considered LECON’s limited breadth of operations in comparison to peers in the leasing industry, and its ability to sustain business performance in the challenging macro environment.

LECON is a pioneer finance and leasing company in Nigeria licensed by the Central Bank of Nigeria (CBN). The Company provides leasing services and other financial solutions to individuals and corporate entities.