Rating Release
Agusto & Co. hereby upgrades the rating assigned to AG Mortgage Bank Plc to a ‘Bb’
The rating expires on 30 June 2024.
Agusto & Co. hereby upgrades the rating assigned to AG Mortgage Bank Plc (“AGMB” or “the Mortgage Bank”) to a ‘Bb’ on the back of strengthened operational risk management structures, enhanced board composition and improved funding profile. The rating reflects the Mortgage Bank’s low leverage, satisfactory funding profile and experienced management team. However, the rating is constrained by AGMB’s low profitability, subpar collections and non-performing loan (NPL) ratio which remains elevated. We have also considered the challenging macro landscape and the attendant impact on households and businesses.
AGMB is one of the largest primary mortgage banks in Nigeria and operates with a national licence from the CBN. The Mortgage Bank’s activities include the origination and servicing of residential mortgages and the provision of construction finance to real estate developers. As at 31 December 2022, AGMB had total assets of ₦18.2 billion.
