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List of Credit Rating Agencies in Nigeria

When you request for a loan, your credit rating plays a huge role on whether your request will be granted or not. The ratings are calculated by credit rating agencies and several factors are put into consideration.

They look at your income flow and credit lines to figure out if you have the ability to pay the particular loan amount. These agencies don’t only function for loans, their services are required for government bonds, stock, corporate bonds, etc.

There are not many credit agencies in Nigeria. In fact, there are just 3 credit rating agencies that are licensed by the Securities and Exchange Commission (SEC). They are:

1. Agusto and Co.

This company is the first credit rating agency in Nigeria. They offer their services also in other countries and have been in operations since 1992. The ratings they generate are globally accepted and they have issued more than 1500 ratings for various industries.

Aside from being the first credit rating agency to be licensed by the SEC, Agusto and Co. is also the first credit agency to assign ratings to insurance companies, discount houses, and banks in Nigeria. It is also the first credit rating agency to assign ratings to firms and companies in the Nigerian stock exchange.

They are located at UBA House, 5th Floor, 57 Marina, Lagos. You can contact them by phone using +234 1 2707222-4 or 7615985, and you can contact them by email via [email protected].

2. Datapro Limited

Datapro Limited has been offering credit rating services for over 10 years and has built a sound professional and ethical reputation in the industry.

The companies consider qualitative and quantitative factors in calculating ratings. Ratings issued by Datapro are valid for up to a year from the issue date. That’s, however, the maximum so in some cases, it could be lesser.

You can present Datapro credit ratings anywhere in the world and they’ll be acknowledged. Furthermore, Datapro Limited has relatively affordable rates.

Aside from credit rating, Datapro also offers enhanced due diligence, compliance solutions, and data protection services.

The company is located at 6th Floor, Ashakun House, 13/15 Lake Street, Off Broad Street Akpongbon, Lagos. You can contact them by phone using ++234 8055416135 or +234 8033091467.

3. Global Credit Rating

As the name describes, this is a global credit rating agency with a subdivision in Nigeria. The company, along with its international affiliates provide ratings for more than 3000 debt issues and organizations. Their clients are spread across 4 continents.

Global Credit Rating focuses on rating financial institutions including banks, insurance, assurance, healthcare, reinsurance, and other non-bank financial institutions. They also cover industrial borrowers, corporate borrowers, public sector debt, corporate sector debt, etc.

Some top clients rated by the company include Transcorp Hotels Plc, Nigerian Reinsurance Corporation, Gombe State Government of Nigeria, and Plateau State Government of Nigeria.

They are located at New Africa House, 8th Floor Marina, Lagos and can be contacted by telephone via +234 8056158393 or +234 8033283027.

About Credit Rating And Its Importance

Individuals, organizations, enterprises, nonprofits, governments, and even entire nations can all be given a credit rating based on their perceived ability to pay back loans. The ability of borrowers to make timely loan repayments is evaluated by specialized credit rating companies. 

The credit rating is based on a comprehensive report compiled by the credit rating agencies, which considers a wide range of factors, including the borrower’s or lender’s track record of making payments on time, the amount of debt owed, the outlook for the economy, and more. 

A high credit score demonstrates dependability in reimbursing debts in the past and boosts one’s reliability. The information is useful for the lending and interest rate decisions made by banks and investors.

There is a common misunderstanding that a credit score and a credit rating are the same thing. 

As was previously established, a credit rating is assigned to a business or corporation and not an individual. This is a measure of how likely they are to stop making their payments. The rating is determined by analyzing the financial instruments of a company and is often shown as a set of alphanumeric symbols. 

However, an individual’s creditworthiness is measured by a number, typically in the range of 300 to 900, called a credit score. Credit bureaus use this number to help decide whether or not to grant an individual credit or loans. 

Why Is It So Important to Have a Good Credit Score?

A higher credit rating indicates that the company or entity is more likely to repay the borrowed credit, as credit ratings are an estimate of the borrower’s creditworthiness.

However, if their credit rating is bad, they may be more likely to fail on their loans. They may have a hard time obtaining a loan because of this, as banks and other financial institutions may view them as a credit risk. 

By considering the borrower’s risk, lenders and investors are able to make more informed and prudent judgments. 

Potential borrowers’ credit scores provide lenders confidence that their money will be repaid on time and with the appropriate level of interest. 

A better credit score indicates that a company is less of a financial risk and increases the likelihood that a loan application will be approved. 

Organizations with a higher credit rating will receive loan offers from reputable financial organizations, such as banks, that provide more favorable interest rates. 

Bottom Line

Now you know the top three credit rating agencies in Nigeria. A better credit score can facilitate capital raising, business expansion, and lower borrowing costs for a company. Also, these ratings can aid lenders in gaining access to comprehensive financial data and in promoting higher quality accounting practices.