FairMoney Earns GCR Rating Upgrade Backed by Strong 2024 Financial Results
Nigerian fintech MyCredit Investments Limited (FairMoney) has recorded a major boost to its credit standing following an upgrade by Global Credit Ratings (GCR), the continent’s leading credit rating agency. GCR raised the company’s long-term rating from BBB(NG) to BBB+(NG) and elevated its short-term rating from A3(NG) to A2(NG), maintaining a Stable Outlook.
GCR said the rating boost reflects overall improvements in Nigeria’s microfinance landscape and underscores FairMoney’s strong market positioning, enhanced by its scale, technology-driven operations, and efficiency.
Solid Earnings, Strong Cash Flow, and Better Portfolio Management
The agency cited FairMoney’s steady earnings, robust cash flow, and flexible funding structure—further supported by its parent company, Predictus SAS—as key contributors to the upgrade.
FairMoney also posted impressive results for the 2024 fiscal year, with NGN 112.3 billion in operating revenue. Speaking on the rating uplift, Henry Obiekea, Nigerian Director, noted:
“For three consecutive years, we have successfully reduced portfolio credit risk without jeopardising our margins.”
He added that FairMoney continues to rank among Nigeria’s top performers in microlending due to strong customer demand and high loan volumes. The company has also broadened its product suite to include financing for small and medium-sized enterprises (SMEs).
Technology and Scale Strengthen FairMoney’s Competitive Edge
Despite sector-wide challenges related to portfolio quality, GCR acknowledged FairMoney as one of the leading players in Nigeria’s microlending market. The fintech’s growth is supported by its proprietary technology, massive transaction throughput—including more than 10,000 loan applications and disbursements daily, and strong brand presence.
FairMoney’s healthy cash generation, limited debt exposure, and expanding base of low-cost customer deposits continue to enhance its credit profile.
Stable Outlook Supported by Risk Management and Market Expansion
The Stable Outlook signals GCR’s expectation that FairMoney will further enhance its portfolio quality within the next 12 to 18 months. Contributing factors include:
- Increased reliance on internal and external data analytics for better risk assessment
- Progressive entry into secured lending
- A gradually stabilising macroeconomic environment
GCR forecasts that FairMoney will continue to grow its market share, broaden its revenue sources, maintain NIM below 80%, and keep operational cash flow and leverage at current healthy levels.
FairMoney Responds to the Rating Upgrade
Obiekea described the upgrade as a validation of FairMoney’s business strength:
“GCR’s decision to raise our ratings reaffirms the resilience of the FairMoney platform, our strong financial results, and our disciplined approach to credit risk management.”
