Global Credit Ratings (GCR) has upgraded the national scale issuer ratings of FairMoney Microfinance Bank, marking a significant boost for the fast-growing digital lender. FairMoney’s long-term rating increased from BBB(NG) to BBB+(NG), while its short-term rating rose from A3(NG) to A2(NG). The outlook for the bank remains stable.
According to FairMoney, the upgraded ratings underscore improvements in the Nigerian microfinance sector and reaffirm the bank’s strong position in the industry. Its growth is driven by scale, advanced technology, and a highly efficient operational model.
GCR highlighted FairMoney’s consistent earnings, strong cash flow generation, and flexible funding structure. These strengths are further supported by Predictus SAS, its parent company.
Speaking on the development, Henry Obiekea, Director of FairMoney Nigeria, said the bank has “consistently managed portfolio credit risk downwards without hurting margins” over the last three years. He noted that FairMoney remains one of the top earners in Nigeria’s microlending market, fuelled by strong customer demand and high-volume loan disbursements. The bank has also diversified its services, now extending loans to small- and medium-scale enterprises.
Despite competitive challenges, GCR described FairMoney as a market leader in Nigeria’s digital microlending space. The agency pointed to the institution’s proprietary technology, high transaction volumes—averaging more than 10,000 daily loan requests—and strong brand presence as key drivers of its nationwide expansion.
FairMoney’s robust cash generation, low debt levels, and stable, low-cost deposit base were also highlighted as contributors to its positive credit profile.
The stable outlook reflects GCR’s expectation that FairMoney will continue strengthening its portfolio quality over the next 12 to 18 months. This will be supported by expanded use of internal and external data for improved risk assessment, gradual entry into secured lending, and a more stable macroeconomic environment.
GCR further anticipates that FairMoney will deepen its market share, broaden its earnings base, maintain its Net Interest Margin (NIM) below 80%, and sustain strong operational cash flows.
Obiekea concluded that the upgrade is “a strong endorsement of the FairMoney platform… our business model, solid financial performance, and commitment to effective credit risk management.”
Licensed by the Central Bank of Nigeria, FairMoney MFB offers instant loans, savings accounts, credit lines, and payment services through its mobile app.
