Rating Release
Agusto & Co. hereby upgrades the rating assigned to Credit Direct Finance Company Limited to “Bbb+” with a stable outlook
The rating expires on 30 June 2025.
Agusto & Co. hereby upgrades the rating assigned to Credit Direct Finance Company Limited (“Credit Direct”, “CDL” or “the Company”) to “Bbb+”. The upgrade reflects Credit Direct’s dominant position in the industry and its good and consistent profitability, which compares better than most peers in the consumer lending segment. The rating is also upheld by CDL’s improving funding profile with the diversification of sources, competent and experienced management team and strong support from the FCMB Group. However, the rating is constrained by the Company’s high vulnerability to volatile public sector finances, exposure to repricing risk in a rising interest rate environment and aggressive loan growth, albeit with mitigants to control delinquencies.
Credit Direct is licensed by the Central Bank of Nigeria (CBN) to operate as a finance company and is a leading player in the consumer lending segment. CDL has a niche in providing salary-backed credit facilities to employees of government ministries, departments and agencies (MDAs) at the federal and state levels.