Agusto & Co, Nigeria’s Pan-African Credit rating agency has assigned ratings to three of mortgage banks and one micro-finance bank: Infinity Mortgage Bank Plc; Nigeria Mortgage refinance Company, Brent Mortgage Bank Limited and Baobab micro-finance bank
Infinity Trust Mortgage Bank Plc’s “Bbb+” rating was affirmed
The Infinity Trust Mortgage Bank rating which expires on June 30 2020 was underpinned by the Bank’s satisfactory asset quality, improved liquidity and funding profile, and adequate capitalization.
The rating is however impeded by Infinity Trust’s profitability which is below Agusto’s expectations and a high level of concentration in the Bank’s loan book.
Nigeria Mortgage Refinance Company’s ₦11 billion, 15-year, Second Series Bond gets “Aaa” rating.
The Bond is the second tranche under the Company’s ₦440 billion debt issuance programme and the rating expires on 30 June 2020.
The rating is supported by the unconditional and irrecoverable guarantee issued by the Federal Government of Nigeria for the due and punctual performance by the Issuer of all its payment obligations in relation to notes issued by the NMRC for an amount not exceeding ₦100 billion.
The Bond to rank pari-passu with present and future outstanding unsecured and un-subordinated obligations of the Issuer and the guarantor (the Federal Government of Nigeria).
Brent Mortgage Bank Limited gets “Bbb-” rating.
The rating assigned to Brent Mortgage Bank Limited reflects the Bank’s good capitalization, adequate liquidity profile and experienced management team.
The rating is, however, constrained by weak profitability and a high level of impaired credits. Furthermore, the Bank’s risk management framework requires improvement.
Brent Mortgage Bank Limited also get “SR4” Servicer rating.
The rating reflects that Brent Mortgage Banks Limited satisfactory collection and asset administration procedures and expires on 25 July 2020.
The rating is however constrained by overlapping functions among core staff and a largely manual credit administration and process.
Baobab Micro-finance Bank Limited get “Bbb” ratings.
The rating of Baobab Microfinance Bank Limited is underpinned by good profitability, strong sponsors’ support and a stable management team.
However, the rating is tempered by an unfavorable economic climate and high cost of operations.