Agusto and Co, Nigeria’s leading research and rating company, has affirmed the “A-” rating assigned to LAPO Microfinance Bank Limited.
The rating assigned to LAPO Microfinance Bank, which will expire on 30 June 2019, reflects the bank’s strong market position, good capitalisation, good liquidity and funding profile.
Despite the impressive rating of the micro lender, the rating is, however, constrained by the rising level of impaired loans, increasing operating costs and the impact of low BVN compliance on loan disbursements and profitability.
In addition, Agusto & Co reported further that the rating was also tempered by the fragile but improving Nigerian economy, which continues to impact the quality of the loan portfolio of lenders generally.
