Baobab MFB Gets ‘BBB’ Rating 

DataPro, a credit rating agency approved by the Securities and Exchange Commission (SEC) has in its latest report assigned Baobab MFB long-term rating of ‘BBB’ with a stable outlook for the year 2019/2020.

A statement signed and made available to THISDAY by the Managing Director, Datapro, Abimbola Adeseyoju, noted that the ‘BBB’ rating indicated that the MFB has a fair financial strength, operating performance and business profile when compared to the standards established by DataPro. 

The statement explained that the MFB has the ability to meet its ongoing obligations, subject to adverse changes in economic conditions.

It added: “The DataPro Rating Committee approved the rating after assessment of the bank’s Capitalisation, Earnings Profile, Liquidity, Corporate Governance, Regulatory Risk and Sustainability of its current healthy profile in the medium to long-term period.

“Baobab Microfinance Bank’s Issuer Default Rating (IDR) is supported by its very good liquidity, good capitalisation and good asset quality. 

“The rating took note of the fact that the MFB’s capital adequacy ratio (CAR) for the reviewed period was 35 per cent, which is well above the regulatory requirement of 10 per cent.”