Agusto and Co as affirmed the “A-” rating assigned to Lapo Microfinance Bank Limited. The rating expires on 30 June 2019.
The rating assigned to LAPO Microfinance Bank, eflects the Bank’s strong market position, good capitalisation, good liquidity and funding profile.
However, the rating is constrained by the rising level of impaired loans, increasing operating costs and the impact of low BVN compliance on loan disbursements and profitability.
The rating is also tempered by the fragile but improving economy which continues to impact the quality of the loan portfolio.