Agusto & Co. upgrades Development Bank of Nigeria Plc’s rating to ‘Aaa’ with a stable outlook

Agusto & Co. upgrades Development Bank of Nigeria Plc’s rating to ‘Aaa’ with a stable outlook

Rating Release

Agusto & Co. upgrades Development Bank of Nigeria Plc’s rating to ‘Aaa’ with a stable outlook.

The rating expires on 30 June 2022.

Agusto & Co. hereby upgrade the rating assigned to Development Bank of Nigeria Plc (‘DBN’ or ‘the Bank’) to ‘Aaa’. The rating takes into cognisance the support of the Bank’s shareholders – the Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority (NSIA), African Development Bank (AfDB) and the European Investment Bank (EIB). AfDB and EIB are both rated ‘Aaa‘ by Standard and Poor, Moody’s and Fitch Ratings. Asides from equity contribution, AfDB provides long-term borrowings, technical and business support to DBN. The rating also considers the support of other international development finance institutions such as the French Development Agency (AFD), KfW, the German Development Bank and the World Bank who provides funding and technical support in addition to strengthening governance. Furthermore, DBN’s good asset quality, good capitalisation, good liquidity and experienced management team are also positive rating factors. However, constraining these is the limited operating history and weak macroeconomic fundamentals.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Credit Direct Limited Bbb Jun 30 , 2022 Stable Nigeria
Citihomes Finance Company Limited SR3 Jul 05 , 2022 N/A Nigeria
WSTC Financial Services Limited Bbb+ Mar 31 , 2022 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Axxela Limited A- Jun 30 , 2022 Stable Nigeria
Kawai Technologies Limited Bb Jun 30 , 2022 Neutral Nigeria