A rating agency, Agusto & Co. (“Agusto”) has assigned “AAA” rating to the Development Bank of Nigeria Plc.
In summarising 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”. The DBN in a statement yesterday said it would continue to expand the scope of its operations, on boarding more participating financial institutions (PFIs) and deepening credit penetration in the low end of the market, particularly amongst women entrepreneurs, who represent over 50 per cent of the bank’s ultimate credit beneficiaries.
“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,” the bank said in the statement.
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.
Agusto highlighted “DBN’s good asset quality, good capitalisation, good liquidity, and experienced management team are also positive rating factors”. 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.