Agusto & Co. hereby upgrades the rating assigned to Fewchore Finance Company Limited to “Bbb-” with a stable outlook
The rating expires on 30 June 2024.
Agusto & Co. hereby upgrades the rating assigned to Fewchore Finance Company Limited (“Fewchore Finance”, “FFCL” or “the Company”) to “Bbb-”. The upgrade reflects Fewchore Finance’s more established performance track record and growing market share in the finance house industry. FFCL’s rating is also upheld by adequate capitalisation and risk management practices and an experienced management team. However, the rating is constrained by the Company’s reliance on expensive purchased funds, high concentration risk in loans and borrowings and an aggressive loan book growth in an adverse macro-economic environment.
FFCL is a finance company licensed by the Central Bank of Nigeria (CBN) that primarily focuses on providing short-term credit facilities for local trade finance and working capital. As at 31 December 2022, the Company had total assets of ₦8.1 billion.