GCR Ratings (“GCR”) has affirmed MyCredit Investments Limited’s (trading as ‘FairMoney’) Nigerian national scale long-term and short-term issuer ratings of BBB(NG) and A3(NG) respectively.
The rating agency explained that FairMoney was rated on the basis of its strong cash flow generation and liquidity coverage, specifically noting that “The assigned ratings are supported by FairMoney’s strong cash flow generation and liquidity coverage, as well as modest gearing”.
FairMoney maintains a diversified funding base and adequate liquidity. According to GCR, “The company’s funding sources are diversified and include retail, corporate and high net worth individuals”. GCR also added “Overall, we think improved access to diverse sources of funding is beneficial to the liquidity assessment of the company”.
FairMoney’s Managing Director, Henry Obiekea, who commented on the ratings said, “GCR’s affirmation of FairMoney’s investment grade rating is a testament of the company’s business model, strong financial performance, effective credit risk management, improved governance and management.” He also reiterated the company’s commitment to maintain its position as the leading consumer lender in Nigeria whilst driving innovative products across its banking and wealth management offerings. The investment grade ratings is a strong enabler of the Company’s strategy to attract funding from the Nigerian Debt Capital markets.
Source: Business Insider
