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
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.
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