|
Listen now
Getting your Trinity Audio player ready...
|
GCR Ratings (GCR) has suspended the ratings on Zedcrest Capital Limited (Zedcrest or the group), without review.
“The 2023 and 2024 audited financial statements for Zedcrest have not been received and therefore a review of the ratings cannot be finalised as a result of GCR’s information sufficiency standard requirement,” GCR said in an update.
“GCR will only reinstate the ratings and analytical coverage for Zedcrest should the required information be received and will otherwise withdraw the ratings in the next 3 months.”
The ratings were last reviewed in April 2024.
A credit rating suspension does not imply that the entity is not servicing its debt obligations or that its financial position has deteriorated, but rather that it has failed to provide important information pertaining to its credit profile.
Zedcrest reported huge credit losses in 2022 and 2023, amounting to NGN8.4Bn and NGN4.5Bn respectively, reflecting the high default rates associated with unsecured consumer loans, and high-risk trading securities.
Focusing on its consumer lending business, the group was challenged with problem credits from two state governments that underwent a revalidation of the payroll systems and platforms, which led to delays in collections and repayment of the existing loans for over six months.
As such, the credit loss ratio widened to 28.1% in 2022 (2021: 9.8%), but narrowed to 12.3% in 2023, albeit remaining on a weak level. Similarly, the ratio of non-performing loans (NPL) to gross loans was elevated, registering at an average of 15% between 2021 and 2024.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
 has suspended the ratings on Zedcrest Capital Limited (Zedcrest or the group), without review.){kind=link}