Nigerian fintech company MyCredit Investments Limited (FairMoney) has received a significant credit rating upgrade from the Global Credit Ratings (GCR) agency, Africa’s leading credit rating organisation. The fintech’s long-term rating has been elevated from BBB(NG) to BBB+(NG), while its short-term rating has been upgraded from A3(NG) to A2(NG). The outlook remains Stable.
According to GCR, the upgrade reflects improvements in Nigeria’s microfinance sector and reinforces FairMoney’s strong industry position, driven by its scale, advanced technology infrastructure, and operational efficiency.
Strong Financials and Improved Portfolio Quality
GCR highlighted FairMoney’s consistent earnings, strong cash flow generation, and flexible funding structure, bolstered by support from its parent company, Predictus SAS
The company also reported a solid performance in its 2024 fiscal year, generating NGN 112.3 billion in operating revenue. Commenting on the upgraded rating, Henry Obiekea, Nigerian Director, said:
“Over the last three years, the company has consistently managed its portfolio credit risk downwards without hurting margins.”
He reaffirmed FairMoney’s position as one of the top earners in Nigeria’s microlending market, driven by high customer demand and high-volume loan disbursement. The fintech has also expanded its offerings to include loans for small and medium-scale businesses (SMEs).
Technology, Scale, and Brand Strength Drive Growth
Despite competitive pressures and portfolio quality challenges across the sector, GCR noted that FairMoney remains a top player in Nigeria’s microlending space. The company continues to leverage its proprietary technology, high transaction volumes, with over 10,000 daily loan requests and disbursements, and strong brand recognition to expand financial access nationwide.
FairMoney’s strong cash generation, modest debt levels, and a stable, low-cost customer deposit base underpin its improving credit profile.
Stable Outlook as FairMoney Expands and Strengthens Risk Assessment
The Stable Outlook reflects GCR’s expectation that FairMoney will continue improving its portfolio quality over the next 12 to 18 months. This is supported by:
- Increased use of internal and external data for improved customer risk assessment
- Gradual expansion into secured lending
- A more stable macroeconomic environment
GCR anticipates that FairMoney will strengthen its market share, diversify its earnings base, maintain its net interest margin (NIM) below 80%, and sustain its current levels of operational cash flow and leverage.
FairMoney Reacts to Its Upgraded Rating
Obiekea concluded by saying:
“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.”
