GCR Upgrades FairMoney’s Credit Ratings, Cites Sector Growth and Financial Strength
My Credit Investments Limited (“FairMoney”) has received an upgrade in its credit ratings from Global Credit Ratings (GCR), Africa’s premier credit rating agency. The move reflects the company’s strengthened position within Nigeria’s microfinance sector and recognizes its solid financial performance in FY 2024, which recorded an operating revenue of NGN 112.3 billion and a Net Interest Margin (NIM) of 82.9%.
GCR elevated FairMoney’s long-term issuer rating from BBB(NG) to BBB+(NG), and its short-term rating from A3(NG) to A2(NG), with the outlook remaining Stable. The upgrade underscores the sector’s resilience and FairMoney’s leadership, driven by its scale, technological advancements, and operational efficiency.
GCR highlighted FairMoney’s consistent earnings, robust cash flow, and flexible funding structure, further supported by its parent company, Predictus SAS.
Commenting on the upgrade, Henry Obiekea, Director of FairMoney Nigeria, stated that “over the last three years, we have consistently managed portfolio credit risk downwards without hurting margins.” He added that FairMoney continues to be a top performer in the microlending market, driven by high customer demand and high-volume loan disbursements. The company has also diversified its offerings to include loans for small and medium enterprises.
Despite competitive pressures impacting portfolio quality, GCR noted FairMoney’s prominent role in Nigeria’s microlending industry. The company leverages proprietary technology, processes over 10,000 loan requests daily, and benefits from strong brand recognition to expand financial access nationwide. Its solid cash generation, modest debt levels, and stable, low-cost customer deposits bolster its overall credit profile.
The Stable outlook from GCR indicates expectations that FairMoney will continue to improve its portfolio quality over the next 12 to 18 months. This positive outlook is driven by increased use of data analytics for risk assessment, expansion into secured lending, and a more stable macroeconomic environment. GCR anticipates the company will grow its market share, diversify earnings, keep NIM below 80%, and sustain operational cash flows and leverage levels.
“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,” Obiekea concluded.