Agusto upgrades rating of AG Mortgage Bank to ‘Bb’

Agusto & Co has upgraded the rating it assigned to AG Mortgage Bank Plc to a ‘Bb’.

AG Mortgage Bank Plc is one of the largest primary mortgage banks in Nigeria and operates with a national licence from the Central Bank of Nigeria (CBN).

Agusto said it upgraded the rating assigned to AG Mortgage Bank Plc to a ‘Bb’ on the back of strengthened operational risk management structures, enhanced board composition and improved funding profile.

It said saying the rating expires on June 30, 2024

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According to Agusto & Co, the rating reflects the Mortgage Bank’s low leverage, satisfactory funding profile and experienced management team.

However, the rating is constrained by AG Mortgage Bank Plc low profitability, subpar collections and non-performing loan (NPL) ratio which remains elevated.

‘We have also considered the challenging macro landscape and the attendant impact on households and businesses’, Agusto & Co said.

The Mortgage bank’s activities include the origination and servicing of residential mortgages and the provision of construction finance to real estate developers. As at December 31, 2022, AG Mortgage Bank Plc had total assets of N18.2 billion.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

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