GCR Ratings (“GCR”) has suspended the BBB-_(NG)/A3 issuer ratings of LAPO Microfinance Bank Limited (LAPO) and the BBB-_(NG) issue rating of LAPO MFB SPV Plc’s Series 2 Bonds without review.

No information has been received and therefore a review of the ratings cannot be finalised as a result of GCR’s information sufficiency standard requirement. GCR will only reinstate the ratings and analytical coverage for LAPO should the required information be received and will otherwise withdraw the ratings in the next three months. The ratings were last reviewed in March 2022.

A credit rating suspension does not imply that the entity is not servicing its debt obligations or that its financial position has deteriorated, but rather that it has failed to provide important information pertaining to its credit profile. Based on our interactions with the management team, the inability to supply rating information is due to prolonged regulatory delays in approving LAPO’s financial statements. To view GCR’s withdrawal and suspension policy please visit https://gcrratings.com/wp-content/uploads/2022/05/GCR-Rating-Scales-Symbols-and-Definitions-May-2022.pdf

Ratings history

LAPO Microfinance Bank Limited

NGN6.2Bn Series 2 Fixed Rate Senior Unsecured Bonds

Salient Points of Accorded Rating

GCR affirms that a.) no part of the rating process was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument.