DataPro, the technology-Driven Credit Rating Agency (CRA) has in its latest report assigns FHA Mortgage Bank Limited long-term rating of “BBB” with a Stable Outlook for the year 2021/2022.
According to a statement by the Client Services Manager of DataPro, Kehinde Rasheed explained that the “BBB” rating indicates slight risk and that it shows fair financial strength, operating performance, business profile when compared to the standard established by DataPro.
The DataPro Rating Committee approved the Rating after an assessment of the Company’s Financial Performance, Capital Adequacy, Asset Quality, Liquidity, Profitability, Corporate Governance & Risk Management as well as Risk Factors of its current healthy profile in the medium to long-term period.
The Bank generated Earnings from Interest and Non-Interest sources which contributed 38% growth in Gross Earnings during the year 2020. The Bank’s Operating Expenses also grew marginally by 3% from N469m (Yr. 19) to N481m (Yr. 20).
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The Rating of FHA Mortgage Bank Limited is supported by the Bank’s Leverage on the capacity of its Parent Body FHA Mortgage Bank Limited had a Short-Term Rating of “A2” which indicates Fair Credit Quality and Adequate Capacity for timely payment of financial commitments.
DataPro notes that the Rating carries a maximum shelf life of 12 calendar months, in line with International Best Practice. The Rating is therefore not an offer to trade in securities nor a substitute for the user’s judgment. It is meant for reference purposes.
