Crownrise Finance gets Agusto’s B+ rating
Agusto & Co, Nigeria’s foremost rating company has assigned a B+ rating to Crownrise Finance Plc.
The rating, according to the rating company, is supported by adequate capitalisation of Crownrise Finance Plc and the expected improvement in the funding profile, increased earnings and profitability.
“This also represents a positive outlook for investors in our medium term investment and funds placement products”, the Managing Director/Chief Executive, Crownrise Finance, Babatunde Rufai-Lariba, said.
The finance company, licensed in 1992 by the Central Bank of Nigeria (CBN), following the industry challenges triggered by the 2008/2009 global economic meltdown, has grown it capital base well above industry threshold, with its recently acquired corporate head office in Lagos.
While the B+ rating affirms the impact of recent efforts of the company’s board, led by Jonathan Babalola, to reposition the institution to play critical role in the rejuvenation of the country’s economy, Agusto however, stated that the rating is constrained by some structural framework issues, including weak funding profile.
“Going forward, we expect Nigeria’s economy to maintain its growth trajectory, notwithstanding the imminent election. This should spur business activities and demand for small, medium and micro loans and leases, and project financing, as well as create increased opportunities for finance companies such as Crownrise Finance Plc,” the rating company said.
But Rufai-Lariba, added: “The current board is committed to positioning the company as a leader in financing small and medium enterprises (SMEs) for profitable contribution to the economy while ensuring sound corporate governance and strong risk management practices, which commenced with raising the company’s capital base above the regulatory threshold.
“Having achieved capital base above the regulatory threshold, the board and management have commenced implementing strategic measures to strengthen the risk management framework and enhance management capacity by recruiting highly experienced professionals with sound track record of performance.
“We have also commenced moves to attract more funding from the investment community in order to increase the funding profile of the company.
“These measures will enhance the ability of Crownrise Finance Plc to generate more loans, improve on our service delivery and deliver improved returns to our shareholders.”