Rating Release
Agusto & Co. maintains the ‘Aaa’ rating assigned to Development Bank of Nigeria Plc, with a stable outlook
The rating expires on 30 June 2024.
Agusto & Co. affirms the “Aaa” rating assigned to the Development Bank of Nigeria Plc (“DBN” or the “Bank”). We have also assigned an ESG Score of “2” reflecting the minimal contribution of environmental, social and governance issues to the Bank’s credit rating. The rating is backed by the support and profile of the shareholders; the Ministry of Finance Incorporated (MOFI), Nigeria Sovereign Investment Authority (NSIA), African Development Bank (AfDB) and the European Investment Bank (EIB). AfDB and EIB, both rated Aaa by Fitch, support the Bank with equity and low-interest, long-term borrowings. These shareholders also provide the technical resources needed to support the target market’s micro, small and medium-sized enterprises (MSMEs).
Similarly, MOFI facilitated the sovereign guarantee to secure the Bank’s borrowings while mitigating the associated currency risk. DBN’s good asset quality, capitalisation, liquidity, and experienced management team are also positive rating factors. However, we have also considered Nigeria’s weak macroeconomic variables that have adversely impacted the performance of MSMEs.