Agusto & Co. hereby upgrades the rating assigned to DavoDani Microfinance Bank Limited to “Bbb-” with a stable outlook. 

Rating Release 

Agusto & Co. hereby upgrades the rating assigned to DavoDani Microfinance Bank Limited to “Bbb-” with a stable outlook. 

The rating expires on 30 June 2026 

Agusto & Co hereby upgrades the rating assigned to DavoDani Microfinance Bank Limited (“DavoDani MFB” or “DDMFB”, or “the MFB”) to “Bbb-” on reflecting the MFB’s good capitalisation indicator, and more conservative loan loss recognition policy in the review year. The rating is also supported by the MFB’s good profitability and stable and experienced management team. However, the rating is constrained by DDMFB’s loan loss expense ratio, considerable concentration to the trade & commerce sector, and reliance on expensive time deposits in a high yield environment. In addition, the MFB’s concentrated ownership structure may affect the decision making and overall quality of governance. We have also considered the macroeconomic headwinds and the challenges posed to DavoDani MFB’s business.

DavoDani MFB is licensed by the Central Bank of Nigeria (CBN) to operate as a state microfinance bank in Lagos State.