Augusto & Co Assigns ‘AAA’, Stable Outlook on DBN

03 Aug Augusto & Co Assigns ‘AAA’, Stable Outlook on DBN

Top credit rating agency, Agusto & Co. (“Agusto”) has assigned a “AAA” rating, on the Development Bank of Nigeria (DBN) Plc (DBN), the highest rating possible on any institution.

It said the rating, which aligns with the ‘risk-free’ rating of the Nigerian Sovereign, Agusto described DBN as “a development finance institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due.”

Agusto stated: “Despite the COVID-19 pandemic, DBN increased its financial support to Micro, Small and Medium Scale Enterprises (MSMEs) and small-sized corporates through participating financial institutions”.

“Notwithstanding the pandemic, DBN doubled its loan portfolio to N215.1billion, leveraging its robust risk management practice in deepening credit penetration to over 136,000 MSMEs.”

Applauding the impeccable fundamentals of the bank, Agusto highlighted that the DBN’s good asset quality, good capitalisation, good liquidity, and experienced management team are also positive rating factors.

The rating agency noted that since its inception, DBN has sustained an outstanding asset quality record of nil delinquency, unique fundamentals which attest to the efficacy of its credit creation model and overall risk management culture.

Reacting to the rating, the Executive Director, Finance & Corporate Services, Mrs. Ijeoma Ozulumba, noted that, “Agusto’s assignment of “AAA” on the bank is another testament to the strong credibility and capacity of the bank, as a distinguished development finance institution with an impeccable and overwhelming capacity to meet obligations and deliver on its core mandate. We would continue to leverage the bank’s balance sheet capacity, global best governance practice, robust risk management framework, and collaborative approach in easing access to credit for growing Nigerian MSMEs, which portend the salient capacity to create jobs, industrialize the economy and drive sustainable growth.”