Global Credit Ratings has upgraded the national scale issuer ratings of FairMoney Microfinance Bank, reflecting the institution’s growing strength and stability within Nigeria’s competitive microlending market. In its latest assessment, GCR raised FairMoney’s long-term rating from BBB(NG) to BBB+(NG), while its short-term rating moved from A3(NG) to A2(NG). The outlook for both ratings remains stable.
FairMoney Microfinance Bank said the upgrade shows the positive changes within Nigeria’s microfinance sector and highlights the bank’s strong position in the industry. The company noted that its scale, technology-driven operations and efficient processes played a major role in securing the improved ratings.
In its report, GCR pointed to FairMoney’s consistent earnings, strong cash flow generation and flexible funding structure. The rating agency also noted the support the bank receives from its parent company, Predictus SAS, which further strengthens its overall credit profile. These factors, according to GCR, make FairMoney one of the strongest players in the microlending space.
The Director of FairMoney Nigeria, Mr Henry Obiekea, reacted to the upgraded ratings by stressing the company’s commitment to effective risk management. He said that over the last three years, FairMoney successfully reduced its portfolio credit risk without affecting margins. According to him, this shows the strength of the company’s risk-management framework and the robustness of its lending operations.
Obiekea explained that FairMoney is one of the top earners in the microlending sector because of high customer demand and the bank’s ability to process large volumes of loan requests. He added that the company has expanded its operations over time, now offering loans to small and medium-sized businesses across different sectors. He said this move aligns with FairMoney’s goal of supporting financial inclusion and improving access to credit nationwide.
GCR also commented on the challenges facing FairMoney’s portfolio quality, noting that the competitive nature of the microlending market continues to put pressure on lending institutions. However, it said FairMoney remains a leading player because it uses proprietary technology, handles high transaction volumes, and has strong brand recognition. The institution processes more than 10,000 daily loan requests and disbursements, which is one of the highest volumes in the sector. The rating agency also highlighted FairMoney’s strong cash generation, modest debt levels and stable, low-cost customer deposit base as factors that support its long-term stability.
The rating agency said the stable outlook reflects its expectation that FairMoney will continue to improve portfolio quality over the next 12 to 18 months. GCR stated that the company’s use of internal and external data to strengthen customer risk assessment would play a major role in this improvement. It also noted that the company’s gradual expansion into secured lending and the more stable macroeconomic environment would support stronger performance.
GCR further anticipates that FairMoney will expand its market share and diversify its earnings base as it grows. It expects the bank to maintain its Net Interest Margin below 80 per cent and sustain its current level of cash flow and leverage. These expectations support the agency’s decision to upgrade the bank’s rating.
Obiekea described the upgrade as a major endorsement of FairMoney’s business model, financial performance and approach to credit risk management. He said the company remains committed to strengthening Nigeria’s financial ecosystem by using technology to improve access to loans, savings and payment services.
FairMoney Microfinance Bank is licensed by the Central Bank of Nigeria. The bank operates primarily through its mobile app, which offers instant loans, savings accounts, credit lines and payment services to millions of users across Nigeria. Many customers say the platform’s speed and convenience have made it one of the most popular digital lenders in the country.
