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Mutual Trust, Infinity MFBs receive ‘BBB’ rating

By Gloria Nwafor
22 November 2021   |   3:28 am
Mutual Trust and Infinity Micro Finance Banks (MFBs) have been assigned a long-term rating of ‘BBB’ with a stable outlook for the year 2021/2022 by Credit Rating Agency (CRA), DataPro.

Mutual Trust and Infinity Micro Finance Banks (MFBs) have been assigned a long-term rating of ‘BBB’ with a stable outlook for the year 2021/2022 by Credit Rating Agency (CRA), DataPro.

A statement by the agency’s Client Services Manager, Kehinde Rasheed, said ‘BBB’ indicated slight risk, showing fair financial strength, operating performance and business profile when compared to the standard established by the rating agency.

The companies, DataPro said, have the ability to meet ongoing obligations though their financial strengths are vulnerable to adverse changes in economic conditions.

It stated that the firm’s rating committee approved the rating after assessment of the companies’ financial performance, capital adequacy, asset quality, liquidity, profitability, risk factors and future outlooks in the medium to long-term period.

It further stated that the rating of the MFBs was supported by the banks’ good liquidity position, good profitability and asset quality.

It said both banks had a short-term rating of “A2”, which indicated fair credit quality and adequate capacity for timely payment of financial commitments.

DataPro noted that the rating carried a maximum shelf-life of 12-calendar months in line with international best practices.