The ratings of leading microfinance bank in Nigeria, MyCredit Investments Limited, operating as FairMoney, have been upgraded by Global Credit Ratings (GCR).
A statement from the leading credit rating agency in Africa disclosed that the upgraded followed FairMoney’s consistent earnings, strong cash flow generation, and flexible funding structure, which is further strengthened by support from its parent company, Predictus SAS.
Business Post reports that the long-term rating of the small lender was raised from BBB(NG) to BBB+(NG), while its short-term rating was moved higher to A2(NG) from A3(NG), with a stable outlook, supported by its increasing use of internal and external data for stronger customer risk assessment, the gradual expansion into secured lending, and a more stable macroeconomic environment.
It was explained that the outlook reflects expectation that FairMoney would continue improving its portfolio quality over the next 12 to 18 months.
GCR says it anticipates that FairMoney will strengthen its market share, diversify its earnings base, maintain its net interest margin (NIM) below 80 per cent, and sustain current levels of operational cash flow and leverage.
In the 2024 financial year, FairMoney delivered a strong financial performance, closing with operating revenue of N112.3 billion.
According to the rating firm, FairMoney remains a top player in Nigeria’s micro-lending sector despite the competitive challenges associated with its portfolio quality.
The institution continues to leverage proprietary technology, high transaction volumes—with more than 10,000 daily loan requests and disbursements—and strong brand recognition to expand financial access across the country.
FairMoney’s strong cash generation, modest debt levels, and stable, low-cost customer deposit base continue to support its overall credit profile.
“Over the last three years, we have consistently managed portfolio credit risk downwards without hurting margins,” the Director of FairMoney Nigeria, Mr Henry Obiekea, commented on the upgraded rating.
“GCR’s decision to upgrade our ratings is a strong endorsement of the FairMoney platform. It highlights the strength of our business model, our solid financial performance, and our commitment to effective credit risk management,” he added.
He emphasized FairMoney’s position as a top earner in the micro-lending market, supported by high customer demand and high-volume loan disbursement, as the organisation continues to diversify its offering, now offering loans to small and medium scale businesses.