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.
ABOUT FAIRMONEY
FairMoney is the leading financial services company and currently the #1 digital lender in Nigeria. Over the last six years, the company has impacted the lives of millions of Nigerians, with the goal to rebuild Africa’s money story by offering Tier 1 digital financial services to merchants and consumers alike.
The company offers a range of digital financial products including Investments, high-interest savings, payment services and cards. The company additionally offers near-instant digital loans 24/7 directly via its mobile app. The digital lending product offering covers loans in tenor up to 24 months to MSMEs and consumers. The end-to-end application to loan offer process takes 5 minutes and is fully digital with no physical touchpoints.
