Rating agency, Agusto & Co, on Tuesday said it assigned “A-” rating to LAPO Microfinance Bank, which it said reflects the Bank’s strong market position, good capitalisation, good liquidity and funding profile.
The rating, which expires on June 30, 2019, Agusto said, is however “constrained by the rising level of impaired loans, increasing operating costs and the impact of low BVN (Bank Verification Number) compliance on loan disbursements and profitability.”
The rating, it continued, “is also tempered by the fragile but improving economy which continues to impact the quality of the loan portfolio.”