Credit Direct announces upgrade in rating

Credit Direct Finance Company Limited (Credit Direct), the consumer finance arm of FCMB Group Plc and one of Nigeria’s digital-first non-bank financial services providers, has received an upgrade to its credit rating from Agusto & Co. to BBB+.  According to Agusto & Co., “The upgrade reflects Credit Direct’s dominant position in the industry and its […]

Credit Direct Finance Company Limited (Credit Direct), the consumer finance arm of FCMB Group Plc and one of Nigeria’s digital-first non-bank financial services providers, has received an upgrade to its credit rating from Agusto & Co. to BBB+. 

According to Agusto & Co., “The upgrade reflects Credit Direct’s dominant position in the industry and its good and consistent profitability, which compares better than most peers in the consumer lending segment.”

Credit Direct has also announced the successful payout of its N6.9 billion Series I and II commercial paper issued in November 2023 on the FMDQ Securities Exchange, a statement by the firm said on Tuesday. 

Commenting on the upgrade, Chukwuma Nwanze, Managing Director/CEO of Credit Direct, said: “This upgrade which puts us among the highest rated FinTech lenders in the country is not only a testament to our robust financial health and strategic agility but also reflects our resilient business model focused on expanding financial inclusion for Nigerians, our sound risk management practices, and the trust we have built with our customers and stakeholders.

“Our strong performance in the first half of 2024 is a clear indication of the transformative power of our digital initiatives. Our commitment to digital transformation has significantly enhanced our operational efficiency, improved customer experience, and boosted employee productivity. About 95% of our loan book at the end of June 2024 originated through our digital channels, a significant improvement from the 62% reported as of June 2023. We introduced four new digital channels and upgraded our existing digital channels, enabling our customers to have 24/7 access to our services.” 

Commenting on the financial performance of the business in the first half of 2024, Kolawole Omoniyi, the Chief Financial Officer at Credit Direct, explained that the company is continuing its growth trajectory despite a tough business climate.