GCR upgrades FairMoney MFB’s long-term rating to BBB+(NG), citing strong earnings, cash flow, and operational efficiency with a stable outlook.

Global Credit Ratings (GCR) has upgraded the national scale issuer ratings of FairMoney Microfinance Bank, reflecting the institution’s strong market position and operational performance.

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FairMoney’s long-term rating was raised from BBB(NG) to BBB+(NG), while its short-term rating moved from A3(NG) to A2(NG), with the outlook remaining stable.

The upgrade highlights improvements in Nigeria’s microfinance sector and FairMoney’s robust position within it, underpinned by its advanced technology, operational efficiency, and scale.

GCR cited the bank’s consistent earnings, strong cash flow generation, and flexible funding structure, further supported by its parent company, Predictus SAS.

Henry Obiekea, Director of FairMoney Nigeria, said, “Over the last three years, we have consistently managed portfolio credit risk downwards without hurting margins.”

He emphasized the bank’s strong market performance, high customer demand, and expansion into loans for small- and medium-scale businesses.

GCR noted that despite competitive challenges, FairMoney remains a top player in Nigeria’s microlending sector, leveraging proprietary technology, high transaction volumes—more than 10,000 daily loan requests and disbursements—and strong brand recognition to expand financial access nationwide.

The stable outlook reflects expectations that FairMoney will continue improving portfolio quality over the next 12–18 months, aided by increasing use of internal and external data for risk assessment, gradual expansion into secured lending, and a more stable macroeconomic environment.

GCR anticipates that FairMoney will strengthen market share, diversify its earnings base, maintain net interest margins below 80 per cent, and sustain operational cash flow and leverage.

Obiekea described the rating upgrade as a “strong endorsement of the FairMoney platform,” highlighting the company’s business model, financial performance, and commitment to credit risk management.

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FairMoney MFB, licensed by the Central Bank of Nigeria, provides instant loans, savings accounts, credit lines, and payment services through its mobile app.