FAIRMONEY’S INVESTMENT GRADE RATINGS AFFIRMED BY GCR; OUTLOOK IMPROVES TO STABLE

FAIRMONEY’S INVESTMENT GRADE RATINGS AFFIRMED BY GCR; OUTLOOK IMPROVES TO STABLE

By Fly Cable News

GCR Ratings (“GCR”) has affirmed MyCredit Investments Limited’s (trading as ‘FairMoney’) Nigerian national scale long-term and short-term issuer investment grade ratings of BBB(NG) and A3(NG). The Ratings Agency also revised the outlook positively to “stable”.

The rating agency explained that the affirmation of FairMoney’s ratings reflects the sustained entrenchment of its market position as a digital micro-lender in Nigeria, as well as its good cashflows and liquidity, specifically noting that “The ratings continue to be supported by the company’s strong cash generation, and an increasingly conservative debt profile because of strong shareholder support”.

FairMoney maintains a diversified funding base and adequate liquidity. According to GCR, “Other competitive strengths relative to other microlenders include FairMoney’s more diverse earnings base and funding sources”. Notably, the company has achieved significant growth in profitability through strong earnings, improved credit risk management and cost savings.

FairMoney’s Managing Director, Henry Obiekea, who commented on the ratings said, “GCR’s affirmation of FairMoney’s investment grade rating with a stable outlook is a testament of the company’s strong earnings/profitability, strong balance sheet/liquidity position, effective credit risk management, and deep debt management capabilities.”

Group CEO & Co-founder, FairMoney, Laurin Hainy, also reiterated the company’s commitment to maintain its position as the leading micro finance bank in Nigeria whilst driving innovative products across its banking, lending and wealth management offerings.

Overall, the investment grade rating with a stable outlook is a strong enabler of the Company’s strategy to attract funding from the Nigerian Debt Capital markets.